South Africa’s consumer confidence has slumped to minus-33 points in the second quarter compared to minus-nine points in the first quarter.
This dismal reading is only three points away from the all-time lowest consumer confidence level of minus-36 recorded in 1985. The low consumer confidence is mainly the result of the COVID-19 pandemic and the lockdown that has affected trade in the country.
However, South Africa’s economy was already in recession before the coronavirus outbreak hit the country in March, with its recession deepening in the first quarter of 2020, dragged down by declining mining and manufacturing activities.
The consumer confidence index is compiled by the Bureau for Economic Research.
The survey was conducted in the first two weeks of June, when most retail outlets were open as the country had shifted from Alert Level 4 to Level 3.
Ahead of the data release, some economists predicted it would take into account the impact of the nationwide lockdown aimed at stemming the spread of the COVID-19 pandemic.
In the video below, investment analyst Izak Odendaal explains why South Africa’s economy contracted by 2% in the first quarter of this year.:
