Thebe Mabanga
South Africa’s consumer confidence fell to its lowest level since the first quarter of last year as soaring fuel prices linked to the Iran war and the closure of the Strait of Hormuz weighed on household budgets, with tighter monetary policy expected to add further pressure. The outlook for household finances fell a full 12 points to zero.
The First National Bank (FNB)/ Bureau for Economic Research (BER) Consumer Confidence Index fell from -7 to -19 in the second quarter of this year.
This is the lowest level since the first quarter of last year, when consumer confidence was rattled by Finance Minister Enoch Godongwana’s proposal to hike VAT. The increase was later scrapped after fierce opposition and a court battle by the Economic Freedom Fighters and Democratic Alliance.
“This time around, it is the fallout from the Iran War and the closure of the Strait of Hormuz
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