South African Consumer Sentiment Weakens in Q3

The FNB/BER Consumer Confidence Index for South Africa rose to -9 in Q4 2025, marking a one-year high, up from -13 in the previous period, likely influenced by holiday-season spending. All three sub-indices, including the economic outlook, household financial outlook, and timing for durable goods purchases, improved, with the strongest gain in the latter, which reached a six-year high. “Apart from a further interest rate cut and an appreciation in the rand exchange rate, a number of other positive developments likely buoyed consumer sentiment towards the end of the year,” FNB chief economist Mamello Matikinca-Ngwenya said. Among these were lower petrol prices, slowing food inflation, and an increase in Q3 employment.

The FNB/BER Consumer Confidence Index for South Africa slipped to -13 in Q3 2025, from -10 in the previous period. The index stays well below the historical average of -1, indicating a greater degree of pessimism. Weak job creation, rising inflation, and dwindling two-pot funds have likely started to weigh on the confidence levels of the middle class,” said FNB Chief Economist Mamello Matikinca-Ngwenya. She warned that waning consumer confidence will likely translate into a more pronounced slowdown in real household expenditure growth toward the final quarter of the year.

The FNB/BER Consumer Confidence Index for South Africa came in at -10 in Q2 2025, rebounding from a near two-year low of -20 in the previous three-month period. While the index is still well below the historical average of -1, the latest reading suggests a modest easing in consumer pessimism. All three sub-indices of the CCI recovered some lost ground during Q2, with the economic outlook sub-index rebounding from -32 to -18, supported by the cancellation of planned tax hikes and the resolution of the coalition’s budget impasse. The household finances sub-index improved from -1 to 9, while the sub-index measuring the appropriateness of the present time to buy durable goods rebounded from -28 to -21.