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.
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 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.
“The economy is beginning to see some of its structural challenges worked down,” Investec economist Lara Hodes wrote in a client note. “These challenges have been impeding optimal economic activity and export potential, and so job creation.”
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