Consumer Research Africa

Consumer Watch – February 2019

Indicators reported in February were on balance negative. Negative retail sales growth for December 2018 broke a 21-month positive growth streak. CPI and PPI inflation in January fell, shedding -50bps and 11.0bps to the lowest levels since March 2018. Also, private sector credit extension quickened in January to 6.5% y/y following four months of deceleration. Vehicle sales performed poorly, declining -7.7% y/y, while the ABSA PMI fell below the neutral mark. Motorists are expected to pay 73c/litre and 92c/litre more for petrol and diesel respectively, however, the cost of fuel in March may still bel ess y/y. The Rand closed the month of February weaker at R14.07 to the US Dollar.