Consumer Watch – November 2018

Consumer confidence for 3Q18 declined to levels we believe are more reflective of SA’s current economic standing. CPI and PPI inflation rose 20bps and 70bps in October to 5.1% and 6.9% respectively, while the PMI slipped again, losing -0.8 points in October. Business Confidence improved by 2.5 points in October adding to previous gains. Motorists will get a 184c/litre and 145c/litre drop in the prices of petrol and diesel respectively. In November, the Rand strengthened against the USD (m/m) a likely factor to this movement being the SARB’s move to bump the repo rate up by 25bps.