2022.12.0813:16:00UTC+00South Africa Consumer Confidence Bounces Back On Increased Willingness To Spend

South African consumer confidence rose sharply in the fourth quarter of the year as households were more willing to make purchases, though an improvement in their ability to spend is needed to lead to a significant increase in consumption, quarterly survey data from the Bureau of Economic Research showed Thursday.

The FNB/BER Consumer Confidence Index climbed to -8 index points from -20 in the previous three months.

Although the index remains in weak terrain relative to its long-term average, it has regained all the ground lost during the first half of 2022, the BER said.

"The rebound in consumer sentiment shows an improved willingness to spend among consumers, but consumers' ability to spend would also need to improve in order to translate into a significant increase in consumption," BER said.

The survey showed that morale strengthened among high-income and middle-income households.

Further, the survey revealed rising optimism among the young people aged 16-34 regarding their financial prospects compared to the older generation.