The bank said August marks the first time this year that spending has grown for two consecutive months.
While many South Africans are struggling to make ends meet, Absa says there has been growth in month-to-month consumer spending.
“The increase is minimal and not yet enough to celebrate a positive turn in economic sentiment or in household consumption recovery.”The report reveals that there has been consumer spending growth of 6%, which outpaced the current inflation rate year-to-date, however, its growth was limited by the weak performance within the food and clothing categories.
They have noted how categories like business and professional services, which include companies like Fintech solutions continue to grow. The slow growth of debit cards being used has been attributed to the economic challenges consumers are facing. Despite the growth in online transactions, in-store purchases are the backbone of the retail sector, which shows that consumers value physical shopping experiences alongside the convenience of e-commerce.
“Our preliminary internal merchant data indicates a muted activity in consumer spending and transaction volumes for September 2024.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PC refresh cycles, tablets spur growth in emerging marketsIT Industry News. Daily.
Read more »
DBE says slow economic growth to blame for current funding crisisThe Basic Education department, like most departments in the government, has faced massive cuts to its budgets due to Treasury’s austerity measures.
Read more »
Africa’s youth workforce is set to drive global economic growth, says expertAfrica’s youth workforce is set to drive global economic growth, says expert
Read more »
Dog Found With Tennis Ball-Sized Growth and Heavy Chain Around His NeckA dog named Jack was found severely neglected with a tennis ball-sized growth on his neck and a heavy chain that restricted his movement. He was rescued by animal welfare authorities who provided him with medical care and removed the chain.
Read more »
Vodacom Business accelerates the growth of smart cities in South AfricaVodacom Business is working with local governments to provide technology solutions to help make South African cities smarter.
Read more »
The important role of your website in e-commerce business growthA company's e-commerce website isn't just a place where transactions happen; it's a primary revenue generator.
Read more »