South Africa’s consumer confidence improved in the first quarter, according to a survey released on Tuesday, driven mainly by a rebound among higher-income households.
However, the report cautioned that the ongoing Middle East conflict could negatively impact sentiment in the months ahead, according to Reuters.
The consumer confidence index, sponsored by First National Bank and compiled by the Bureau for Economic Research, rose to -7 points from -9 in the fourth quarter.
“Unfortunately, the ripple effects from the Iranian war may well see a U-turn in high- and middle-income confidence during the second quarter,” said FNB Chief Economist Mamello Matikinca-Ngwenya.
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South Africa’s central bank is expected to announce its interest rate decision on Thursday as it considers the potential impact of a weak stock market, a declining rand, and rising oil prices on the economy.
The first-quarter survey, conducted before the conflict began in late February, showed that confidence among high-income households improved, supported by lower interest rates, rising stock prices, and a stronger rand exchange rate.
In contrast, sentiment among low-income households declined further compared to the previous quarter, largely due to weak job growth toward the end of 2025 and stricter compliance measures in the social grant system.
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