Consumers lose confidence big time

CONSUMER confidence has taken a major dip. After declining from +22 to +12 during the first quarter, the FNB/BER consumer confidence index (CCI) dropped by a further 18 index points to –6 during the second quarter, the largest fall between consecutive quarters since 1984 when it fell by 27 index points. The latest decrease also exceeds the 16 index points registered eight years ago in the second quarter of 2000. “Although the second quarter produced the biggest drop in consumer confidence between consecutive quarters in close to a quarter of a century, and the overall mood of consumers switched from positive to negative, the current level of –6 is not low by historical comparison,” said FNB chief economist Cees Bruggemans. “A similar level prevailed a mere four years ago,” he said.