The South African MasterIndex jumped from 64.4 in February 2004 to 83.5 in February this year out of a possible index of 100. This is the highest consumer confidence figure the country has seen since the MasterIndex survey began in early 2004.
Conducted bi-annually by MasterCard International in selected markets in the South Asia, Middle East and Africa (SAMEA) region, the survey analyses consumers' perceptions of economic conditions over the next six months.
The countries surveyed included South Africa, Egypt, Kuwait, Lebanon, Saudi Arabia, United Arab Emirates (UAE) and India. The scores are based on respondents' answers to questions relating to five variables: Employment, Economy, Regular Income, Stock Market and Quality of Life.
South Africa had the greatest year-on-year improvement in consumer confidence in the SAMEA region between the first half of 2004 and the first half of 2005. The biggest contributors to this positive result were expectations for the Economy, Employment and Stock Market, with these indicators increasing 34%, 35% and 50% respectively. The other confidence indicators of Regular Income and Quality of Life increased by 9% and 28% respectively.
Eddie Grobler, senior vice-president and general manager of MasterCard Southern Africa says: "Lower personal tax rates, low interest rates, stock market growth, employment growth and a booming property market have all added to the positive glow that South African consumers are currently experiencing.
"From consumption to investment, jobs and the overall quality of life, the average South African has become more confident about his/her future. This is borne out by the fact that every single indicator measured in South Africa's MasterIndex showed a consistent improvement over the last six and twelve months' results."
South Africa was the fourth most optimistic country overall, with Kuwaiti, Saudi, and United Arab Emirates consumers being more optimistic, and with Indian, Egyptian and Lebanese consumers more pessimistic.
MasterIndex was originally introduced in the Asia Pacific region and has grown in relevance and reputation over the past decade. Although still in its infancy in SAMEA, it has been well received by industry analysts, business leaders and media. More recently, President Thabo Mbeki used the previous MasterIndex as a barometer of South African consumer sentiment in his weekly address to the country on the ANC website.
