South Africans Feeling the Pinch as Consumer Confidence Falls to Lowest Level Since 2025

Cape Town, South Africa

South Africans are becoming increasingly worried about their financial future as rising fuel prices and growing living costs continue to put pressure on household budgets.

The latest FNB/Bureau for Economic Research (BER) Consumer Confidence Index dropped sharply from -7 in the first quarter of 2026 to -19 in the second quarter, marking its lowest level since early 2025. According to economists, the decline reflects growing concerns about the economy, personal finances and the affordability of major purchases.

Consumer confidence measures how optimistic or pessimistic people feel about the economy and their own financial situation. When confidence falls, consumers are more likely to cut back on spending and focus on essentials such as food, transport and debt repayments.

One of the biggest contributors to the decline has been rising fuel prices. Higher fuel costs increase transport expenses for households and businesses, often leading to higher prices for goods and services across the economy. Economists estimate that fuel-related costs added significant pressure to consumers during the second quarter.

The survey also found that higher-income households were among the most concerned, largely because of increased fuel expenses, interest rate pressures and uncertainty around the economic outlook.

For many South Africans, the findings reflect the reality of rising living costs. With food, transport and household expenses continuing to climb, families are increasingly looking for ways to stretch their budgets and delay non-essential purchases.

What this means for consumers

Consumers are likely to spend less on luxury and non-essential items.
Businesses may experience slower sales as households tighten their budgets.
Demand for savings, budgeting and financial education is likely to increase.
Households may delay major purchases such as furniture, vehicles and appliances.

As households continue to navigate rising living costs, experts encourage consumers to review their budgets, prioritise essential spending and seek ways to reduce unnecessary expenses. While economic conditions may remain challenging in the short term, informed financial decisions can help families build resilience during uncertain times.