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South Africa consumer confidence starting recovery

Staff writer |
South Africa consumer confidence index went up slightly from recent four years bottom in the first quarter of 2014, according to the Bureau for Economic Research and First National Bank.

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The consumer confidence recovered from the minus seven in the last season of 2013, which is the lowest level in at least four years, to minus six in the first season of this year.

From the index chart, even with the one point up of consumer confidence index, the situation of the beginning of the year remained at a similar level with that of six years ago when power failure hit economic growth.

Though the household spending, main driver of South Africa's economic grow since the 2008 recession, did not show favor for this year's growth, the slight improvement was supported by higher economic growth expectation this year, in line with forecasts by international think-tanks, the Reserve Bank and the Treasury.

Consumers are not feeling comfortable in spending money in the face of rising inflation, higher borrowing costs, public service prices, unemployment and indebtedness, which supported by Investec economist Kamilla Kaplan in his research articles, saying South Africa is in a "slowdown scenario" with "measure pace" of rate hikes.

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