The South Africa consumer confidence index decreased further to 2 in the first quarter of 2019 from 7 in the previous quarter. It is the lowest reading since Q4 2017 and far below the record high of 26 when the President Ramaphosa took office a year ago, as expectations of an economic recovery in the next twelve months faded. "The shock implementation of stage 4 load-shedding by Eskom during February and March no doubt had a very detrimental impact on the South African economy and it is therefore not surprising that consumers are becoming especially concerned about our economic prospects," FNB Chief Economist Mamello Matikinca-Ngwenya said. Other factors could have contributed including prolonged labour strikes, a fall in the rand exchange rate, sharp fuel price hikes and further increases in personal income taxes announced in the February national budget, Matikinca-Ngwenya added. Consumer Confidence in South Africa averaged 1.51 Index Points from 1982 until 2019, reaching an all time high of 26 Index Points in the first quarter of 2018 and a record low of -33 Index Points in the second quarter of 1985.
Consumer Confidence in South Africa is expected to be -5.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Consumer Confidence in South Africa to stand at 5.00 in 12 months time. In the long-term, the South Africa Consumer Confidence is projected to trend around 10.00 Index Points in 2020, according to our econometric models.