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Hard 4th quarter
Nov. 16th, 2010 05:40 pmS.African consumer confidence slips: survey
http://af.reuters.com/article/investingNews/idAFJOE6AF0H920101116
South African consumer confidence has slipped in the fourth quarter as continued job losses weigh on lower income earners' view on future conditions, a survey showed on Tuesday.
The consumer confidence index edged down one point from the third quarter to 14 in the fourth-quarter survey conducted by the First National Bank and the Bureau for Economic Research. The index has moved between 14 and 15 throughout 2010.
"Continued job losses and the difficult financial situation many private companies experience may have dented consumers' expectations about the economy", said Cees Bruggemans, chief economist at First National Bank.
South Africa's labour market shed a further 86,000 jobs in the third quarter, nudging the jobless rate up to 25.3 percent and bringing the number of those who have lost jobs since the start of 2009 to more than 1 million.
High income earners were however more optimistic as disposable income has improved and debt-servicing costs have fallen due to interest rate cuts totalling 600 basis points since December 2008.
Those with secure jobs also benefited from generous salary increases, making for good sales of durable goods, the survey showed.
First National Bank and the Bureau for Economic Research said in a statement that the optimism of high income earners should support retail sales growth in 2011.
http://af.reuters.com/article/investingNews/idAFJOE6AF0H920101116
South African consumer confidence has slipped in the fourth quarter as continued job losses weigh on lower income earners' view on future conditions, a survey showed on Tuesday.
The consumer confidence index edged down one point from the third quarter to 14 in the fourth-quarter survey conducted by the First National Bank and the Bureau for Economic Research. The index has moved between 14 and 15 throughout 2010.
"Continued job losses and the difficult financial situation many private companies experience may have dented consumers' expectations about the economy", said Cees Bruggemans, chief economist at First National Bank.
South Africa's labour market shed a further 86,000 jobs in the third quarter, nudging the jobless rate up to 25.3 percent and bringing the number of those who have lost jobs since the start of 2009 to more than 1 million.
High income earners were however more optimistic as disposable income has improved and debt-servicing costs have fallen due to interest rate cuts totalling 600 basis points since December 2008.
Those with secure jobs also benefited from generous salary increases, making for good sales of durable goods, the survey showed.
First National Bank and the Bureau for Economic Research said in a statement that the optimism of high income earners should support retail sales growth in 2011.
