South Africa saw an improvement in consumer confidence in the first quarter, driven largely by a rebound among higher-income households, according to a survey released on Tuesday.
The consumer confidence index, compiled by the Bureau for Economic Research and sponsored by First National Bank (FNB), rose to minus 7 points in Q1 from minus 9 points in the fourth quarter.
FNB Chief Economist Mamello Matikinca-Ngwenya cautioned that the ongoing conflict in the Middle East could reverse the gains in confidence among high- and middle-income households during the second quarter.
The survey, conducted before the conflict erupted in late February, indicated that higher-income households benefited from lower interest rates, rising stock prices, and a stronger rand exchange rate.
In contrast, consumer confidence among low-income households fell further due to weak employment growth toward the end of 2025 and tighter compliance measures in the social grant system.
South Africa’s central bank is expected to announce its interest rate decision on Thursday, weighing the effects of a weak stock market, a depreciating rand, and rising oil prices on the economy.
