Consumer Watch – May 2018

On balance, economic indicators released in May were negative for consumers. Vehicle sales increased 4.0% y/y despite a 26.2% decline on a m/m basis. Following a significant dip in February, CPI and PPI rose to above 4.0% inflation respectively in March. Food and beverages sales performed well on a nominal basis. PMI was restored to over the 50-point neutral mark. Worryingly, Business Confidence is in its third month of decline. Hefty fuel prices are expected in June and will lift petrol prices above the R15.00/litre mark and diesel to R13.68/litre. The rand closed the month of May at R12.69/USD, above the monthly average.