South African consumers remain reluctant to make major purchases despite a rebound in overall consumer confidence, according to the latest Bureau for Economic Research report.
Consumer confidence improved to minus 13 in the third quarter, from minus 19 in the second quarter, reflecting better sentiment about household finances and the economic outlook.
However, FNB Senior Economist Sphamandla Mkhwanazi said sentiment towards durable goods, including cars, furniture and appliances, fell to an 18-month low.
He said rising fuel and borrowing costs were likely contributing to caution among higher-income consumers.
While confidence improved across all income groups, Mkhwanazi said consumers were “less pessimistic but definitely not optimistic”.
The outlook could remain under pressure as higher oil prices push up fuel costs and household budgets come under strain.