South African consumer sentiment advanced in the fourth quarter to the highest level of 2025, an encouraging sign for household confidence as the festive season approaches, Bloomberg reported on Tuesday, 9 December.
A quarterly index that measures consumer sentiment rose to -9 in the three months to December, compared with -13 in the previous quarter, First National Bank of FirstRand Ltd. said. The increase was captured in a survey conducted last month.
“Alongside a fresh reduction in interest rates and an appreciation in the rand exchange rate, a series of other positive developments will have boosted consumer sentiment at the end of the year,” said Mamello Matikinca-Ngwenya, FNB’s chief economist, adding that “these developments suggest that retailers’ cash registers will ring to a joyful 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 strongest improvement in confidence was recorded in durable goods, which jumped from -20 to -14 points on the index, the highest level in six years. FNB’s statement adds to other positive data suggesting that Africa’s most industrialised economy is regaining momentum, including the country’s credit rating upgrade by S&P Global Ratings for the first time in two decades.
