Consumer confidence rises in Q4

South African consumer sentiment advanced in the fourth quarter to the highest level for 2025, in an encouraging sign for household confidence heading into the holiday season.

A quarterly index measuring consumer sentiment increased to -9 in the three months through December from -13 in the previous quarter, FirstRand’s First National Bank said on Tuesday. The increase was captured in a survey that took place last month.

“Apart from a further interest rate cut and an appreciation in the rand exchange rate, a number of other positive developments likely buoyed consumer sentiment towards the end of the year,” said FNB chief economist Mamello Matikinca-Ngwenya said. “These developments suggest that retail tills will jingle a merry tune during the 2025 festive season.”

The South African Reserve Bank cut interest rates at its meeting last month and is expected to ease monetary policy again in 2026.

Read: A calculated cut: Sarb eases interest rates

The biggest improvement in confidence was reported in the durable goods, jumping to -14 index points from -20, the highest level in six years. The FNB release adds to other positive data suggesting that Africa’s most industrialised economy is regaining momentum, including S&P Global Ratings lifting the country’s credit rating for the first time in two decades.

Read: South Africa’s ratings upgraded by S&P Global

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