Consumer confidence surges as South Africans prepare for festive spending

WITH Black Friday all wrapped up, South African consumers will now look ahead to the festive season, keeping a close eye on deals and their wallets.

- ASHLEY LECHMAN

In a promising sign for the South African economy, consumer confidence has experienced a marked rise heading into the festive season, as revealed by Momentum Investments' latest Consumer Pulse report.

The findings for the fourth quarter of 2025 indicated an improvement in the Consumer Confidence Index (CCI), climbing from -13 to -9, the highest level noted this year and a welcome change from the previous quarter's downturn.

This increase is particularly significant as households gear up for the traditional rise in spending during the festive period.

While there are indicators that household spending may take a hit later in the year due to declines in two-pot withdrawals, the overall situation appears balanced by lower interest rates and a gradual easing of consumer pessimism.

Momentum Investments projected household expenditure to grow by 2.7% in 2025, followed by a further 2% in 2026, reflecting a degree of optimism as we enter the summer holiday season.

Among the report's more striking findings is the notable increase in betting activity amongst South African consumers.

Although gambling turnover appears substantial, it's revealed that only 5% of this amount results in actual losses.

This situation implies that a lot of this turnover could be viewed as recycled betting money, prompting a closer examination of the behavioural patterns of South African consumers as they navigate both spending and leisure activities.