South Africa Consumer Confidence Slumps in Q2
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South Africa Consumer Confidence Slumps IN Q2

Consumer confidence in South Africa fell to -25 points in the second quarter from -23 points in the prior three-month period, the Bureau for Economic Research said Thursday.

The latest reading reflects the significant deterioration of sentiment among high-income households, painting a bleak picture for the retail industry, which benefits from affluent consumers with the “greatest” spending power.

Producer inflation eased

The annual producer price inflation in South Africa eased further to 7.3% in May 2023, from 8.6% in the previous month, matching market forecasts, data released by the statistics office shows.

The latest reading is in line with the consensus forecast. On a monthly basis, the index increased 0.6%, compared with the previous zero growth and the expected 0.5% rise.

It was the softest reading since August 2021 amidst the global inflation surge followed by covid-19 outbreak that wreaked havoc on economies and government finances.

The latest decline in producer inflation was prompted by a slowdown in costs of coke, petroleum, chemical, rubber, and plastic products to 3.6% from 6% in April.

This was also supported by a slowdown in the price index of metals, machinery, equipment, and computing equipment to 6.1% from 6.9% in the previous months.

In addition, food products, beverages and tobacco products baskets decline to 7% from 8.4% in April; paper & printed products (15.5% vs 16.1%) and transport equipment (12.8% vs 13.8%).

On a monthly basis, producer prices increased by 0.6% in May, after being flat the previous month. #South Africa Consumer Confidence Slumps in Q2 Nigerian Treasury Bills Yield Rises to 7%