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Consumer sentiment in South Africa picked up to the highest level since 2024 in the first quarter, a trend that looks set to be derailed by the Iran war.<\/p>\n
First National Bank\u2019s consumer-confidence index compiled by the Bureau for Economic Research improved to -7 in the three months through March \u2014 the third consecutive quarterly increase, the Johannesburg-based lender said in an emailed statement on Tuesday. The data was collated before the conflict in the Persian Gulf erupted on February 28.<\/p>\n
\u201cThe fallout from this development, including skyrocketing oil prices, plunging stock exchanges and travel disruptions, may well knock consumer confidence in the coming months,\u201d FNB Chief Economist Mamello Matikinca-Ngwenya said in the statement. \u201cThis introduces a clear downside risk to what had been a broadly improving consumer confidence trajectory.\u201d<\/p>\n
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Confidence in the first quarter was boosted by declining interest rates, soaring stock prices and a stronger rand exchange rate that benefitted high-income consumers, FNB said. Finance Minister Enoch Godongwana\u2019s generally well-received annual budget speech also supported sentiment, it said.<\/p>\n
The index measuring the mood among low-income consumers declined to -12 from -8 as a result of \u201cdisappointing employment growth towards the end of 2025 and tighter compliance measures in the social grant system,\u201d Matikinca-Ngwenya said.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n