Consumer cash flow improves

11 May 2012

South African consumers experienced an improved cash flow in the first quarter of 2012, according to the latest Consumer Financial Vulnerability Index (CFVI), released on Wednesday.

There was also a greater perception of this improvement, with consumers reflecting their cash flow position at the highest level since the second quarter of 2009.

A shift towards consumption expenditure was observable in the CFVI, indicating that consumers felt more content as they were able to satisfy their consumption needs.

Consumers also felt they were in a stronger position to save, the study found. They felt a sense of financial security, improved from the last quarter of last year, when a state of vulnerability was prevalent.

It was not all good news, however, as consumers had regressed with regard to debt servicing, from secure to “reasonably vulnerable”.

Greater spending on durable goods was recorded in the index, and the employment outlook was more optimistic with greater disposable income.

The CFVI is produced by the Bureau of Market Research at the University of South Africa (Unisa), and sponsored by MBD Credit Solutions.

Sapa