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‘Consumer spending subdued’

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Consumer spending has been subdued on the back of weak economic growth, while motorists are expected to pay less for petrol as global oil prices take a knock.

Data released by Stats SA showed retail trade sales increased by 0.7% year-on-year in September, weaker than market expectations.

Consumers are feeling the pressure of weak economic growth while the high cost of living is weighing on consumer spending.

This as consumers bare the brunt of rising taxes and fuel prices in recent months, eroding their disposable income.

However, the upcoming festive season could help boost retail sales in the fourth quarter.

Local petrol prices could come down from round R17 per litre this as global oil prices take a dip due to fears of a global over supply and moderating demand.

A drop in the fuel price could result in a drop in the inflation rate.

Economist, Elize Kruger says inflation for December could go as low as 4.8% compared to the forecast 5.2 while, consumers are beginning to be cautious about their debt levels.

Data released by Stats SA shows that the number of civil summonses issued for debt decreased by 2.8% in the third quarter.

The National Credit Regulator (NCR) has warned consumers not to be tempted by next week’s Black Friday if they did not budget for it.

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