Wealthy South Africans negative in second quarter
· The South African
The confidence levels of wealthy, that is those earning more than R20 000 per month, South African households were negative in the second quarter 2026.
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This is according to the FNB/BER Consumer Confidence Index (CCI). The overall CCI dropped to -19 in the second quarter from -7 in the first quarter. It had reached a record high of 26 in the first quarter 2018 at a time of “Ramaphoria”, when Cyril Ramaphosa was elected President.
The confidence index for wealthy households plunged to -28 index points from -4 in the first quarter.
This was because the majority (53%) of high-income consumers now expect a deterioration in economic performance over the next twelve months. This compares with only 13% who expected a deterioration in the first quarter.
Wealthy consumers felt that the economic downturn would affect their household finances. In the first quarter they were still positive with a net majority of 14% expecting their household finances to improve. In the second quarter a net 7% of wealthy households now expect a deterioration in their financial position.
Consequently, these wealthy households are less likely to spend on durable goods like cars or home appliances. The index measuring the appropriateness of the present time to buy durable goods dropped to -23 from -15.
Other income groups
The confidence levels of middle-income households, which are those earning between R5 000 and R20 000 per month also fell, but not as much as the wealthy households. This income group reported a drop to -19 from -7.
Surprisingly, low-income households, which are those earning less than R5 000 per month, seemed to be unaffected by the fallout from the Middle East war. Their confidence index was steady at -12 in both quarters.
Overall sub-indices
All three sub-indices of the CCI declined during the second quarter.
The economic outlook sub-index of the CCI fell to -32 from -14.
The graph is based on data provided by the Bureau for Economic Research.The household finances index dropped to zero from 12.
The sub-index measuring the appropriateness of the present time to buy durable goods slipped further to -24 in the second quarter from -21 in the first quarter and -14 in the fourth quarter.
Prospects
The second quarter CCI survey was conducted between 18 and 29 May 2026. That means consumers did not take into account a possible end to the Middle East war and the consequent reduction in fuel prices.
This should therefore result in a recovery in the third quarter consumer confidence index. That is provided a durable peace deal is negotiated.