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Retail

Consumer Confidence In South Africa Improves In Third Quarter

By Dayeeta Das
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Consumer Confidence In South Africa Improves In Third Quarter

South Africa's consumer confidence improved slightly in the third quarter from the three months prior, a survey showed on Monday, helped by pent-up demand for big-ticket purchases such as cars and electronic appliances after vaccination drives.

The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), rose to -10 points from -13 in the second quarter.

'The fact that consumer sentiment did not deteriorate further on the back of the violent protests and rampant looting that tore through KwaZulu-Natal and Gauteng during July points to a level of resilience among consumers,' according to the survey.

Riots broke out in July, leading to damages of hundreds of businesses, after former President Jacob Zuma handed himself in to start a 15-month jail term for contempt of court.

Civil Unrest

The civil unrest that engulfed parts of the country 'would undoubtedly have knocked both business and consumer confidence during July,' the survey said.

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South African retailers had issued statements on the continued unrest in South Africa, with Shoprite stating that it is 'working around the clock' to repair and restock looted and damaged stores.

The rollout of COVID-19 vaccines bolstered confidence levels, the survey suggested, with government support for its employees and an uptick in dividend payments also countering the impact of the civil unrest.

The confidence levels of high-income, middle-income and low-income households were at broadly similar levels during the quarter, the survey of about 500 respondents showed.

News by Reuters, edited by ESM. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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