South Africa's consumer confidence improves in Q1 but Mideast war risks loom, survey shows

South Africa's consumer confidence improved in the first quarter, a survey showed on Tuesday, 24 March 2026 helped by a rebound among higher-income households, although the report warned the Middle East war could weigh on sentiment in the coming months.

Source: Reuters.

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, improved to a minus 7 points from minus 9 in the fourth quarter.

“Unfortunately, the ripple effects from the Iranian war may well see a U-turn in high- and middle-income confidence during the second quarter,” said FNB chief economist Mamello Matikinca-Ngwenya.

South Africa's central bank is due to announce its interest-rate decision on Thursday, 26 March 2026 as it weighs the impact a weak stock market, falling rand and surging oil prices could have on the economy.

The first-quarter survey, which was conducted before the conflict started in late February, showed improved confidence among high-income households supported by lower interest rates, soaring stock prices and a stronger rand exchange rate.

However, confidence among low-income households deteriorated further from the previous quarter, due to disappointing employment growth towards the end of 2025 and tighter compliance measures in the social grant system.