Streaming issues? Report here
Kieno Kammies 2019 1500 BW
Today with Kieno Kammies
09:00 - 12:00
volume_up
volume_mute

Up Next: The Xolani Gwala Show
See full line-up
Today with Kieno Kammies
09:00 - 12:00
Home
arrow_forward
Business

Drop in consumer confidence could spell trouble for GDP in third quarter

6 November 2019 1:43 PM
Tags:
Unemployment
FNB
Consumer Confidence
Consumer Confidence Index
economist
GDP figures
Siphamandla Mkhwanazi
SA consumers aren't feeling very hopeful about the country's economic outlook. This may filter through to their spending patterns.

South African consumer confidence has dropped to the lowest level since President Cyril Ramaphosa came into power, bringing with him the so-called “Ramaphoria”.

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, shows that the overall outlook for the economy has dimmed.

FNB economist Siphamandla Mkhwanazi says this could mean that the gross domestic product (GDP) will also take a knock when the figures for the third quarter are released.

He says consumers have lost their optimism about the future outlook of the country's economy.

He attributes this to a range of factors including rising unemployment, lack of wage increases in the private sector and declining corporate profits.

If history is anything to go by, it does suggest that the quarter three GDP numbers are going to come out not so glossy.

Siphamandla Mkhwanazi, Economist - FNB

It does appear that consumers have lost hope.

Siphamandla Mkhwanazi, Economist - FNB

Unemployment remains very high, in fact, it's increasing. Employees in the private sector aren't getting real wage increases, bonuses aren't being paid.

Siphamandla Mkhwanazi, Economist - FNB

Subscribe to our Business Wrap Newsletter


6 November 2019 1:43 PM
Tags:
Unemployment
FNB
Consumer Confidence
Consumer Confidence Index
economist
GDP figures
Siphamandla Mkhwanazi

More from Business

sarb-bank-notesjpeg

Reserve Bank Governer: Our task is not to bail out Eskom or any SOEs

13 December 2019 8:37 AM

Sarb Governor Lesetja Kganyago highlights responsibilities of Reserve Bank and why interest rates are a tool not policy objective.

Share this:
Read More arrow_forward

debt-managementjpeg

How to know if your finances are on track after a lousy year

12 December 2019 8:05 PM

How do you measure if you are financially on track after a lousy year?

Share this:
Read More arrow_forward

190918saudijpg

Aramco is now the world's largest listed company

12 December 2019 7:23 PM

This massive state oil producer is now the world's first $2 trillion company.

Share this:
Read More arrow_forward

Solar

How this CEO is putting surplus power back into the Eskom grid

12 December 2019 7:19 PM

Is there an option for mass solar supply to South Africa in the near future? This entrepreneur thinks so.

Share this:
Read More arrow_forward

Solar and wind solutions

Eskom: Some solutions right now

12 December 2019 6:31 PM

What are the immediate and existing solutions to Eskom's generation issues?

Share this:
Read More arrow_forward

81a3255d-f359-4d9d-99ef-4b30a09cca2e.jpg

Why we can't place all our SOEs under business rescue

12 December 2019 5:43 PM

Should we use business rescue to save all our parastatals? Specialist attorney Gareth Cremen explains why that's not a good idea.

Share this:
Read More arrow_forward

Sabotage pliers cable cutting

'I trust my members. It’s not in their capacity to sabotage Eskom'

12 December 2019 1:13 PM

"We don’t trust those engineers at Eskom. We don’t trust management and we don’t trust the board," says Joseph Montisetse (NUM).

Share this:
Read More arrow_forward

a831fb5f-2667-445f-b98a-91d01c9ca404.jpg

Task team plans to alleviate Cape Town port congestion

12 December 2019 1:11 PM

A task team has been created to deal with issues at the Cape Town port, from a shortage of cranes to heavy traffic flows.

Share this:
Read More arrow_forward

Refilwe Moloto 2019 B&W

I feel quite strongly we all need champions, says Refilwe

12 December 2019 12:05 PM

Refilwe Moloto shares her thoughts on leadership and the importance of role models.

Share this:
Read More arrow_forward

190420two-oceansgif

Is the 'sponsorless' Two Oceans Marathon being run into the ground?

12 December 2019 11:45 AM

A founding member of Two Oceans has raised red flags about sponsorship issues, financial mismanagement and conflicts of interest.

Share this:
Read More arrow_forward