Consumer confidence high in second quarter: economist
Despite the weaker rand, higher fuel prices and other increases including the VAT rate - new consumer data shows the spending pattern of South Africans has not changed much over the last three months.
According to the latest FNB/BER Consumer Confidence Index - consumer confidence remained surprisingly high in the second quarter of this year at 22 points.
It's slightly down from the first quarter's record high 26 points. That figure had been a leap from the previous quarter's negative eight points.
But the latest index shows fewer consumers feel that now is the right time to buy durable goods - such as cars, electronic goods and household appliances.
FNB Economist Jason Muscat says there are a few explanations for the second quarter's strong consumer confidence.
"Where the consumers are benefiting slightly is that we had an interest rate cut at the beginning of the year. Despite the VAT increase in the February budget, the past year has been relatively muted. We've also had very good wage increases particularly in the public sector.
"We are also starting to see an improvement in terms of some disposable income being freed up for lower income earners because of free higher education," Muscat said.