More than a third of South Africans are living beyond their means and turning to credit to stretch their income as prices for common goods continue to rise, a latest survey found.
In Deloitte’s latest State of the Consumer Tracker, which measures consumer sentiment across 23 countries for October 2021, it found that the priorities of South Africans are shifting with additional emphasis on wellbeing, experiences, and greater intentions to save more for the future.More than a third of South Africans are living beyond their means and turning to credit to stretch their incomes as prices for common goods continue to rise, a survey has found.
According to the data, South Africans are the fourth most financially anxious consumers of the markets surveyed because of current pressures, yet three in four people are optimistic about their long-term financial situation. “The data also shows us that consumers are becoming increasingly concerned about rising prices and, given the context of the new Omicron variant, this puts a grey cloud over South Africans’ pent-up demand, desire to socialise and resume traditional spending habits throughout the festive season,” he said.
The largest concern is around groceries, where 78% of South Africans believe prices are higher compared to last month. “We’ve also seen online purchase intentions moving along with the rise and fall in infection numbers,” George said.