Consumer spending up during level 4 lockdown says FNB

CAPE TOWN –  Consumer spending increased slightly since the start of the level 4 lockdown according to data released by FNB.

However, despite the increase in consumer spending, activity is still averaging significantly lower compared to pre-lockdown levels, said Chief Executive of FNB Retail Raj Makanjee.

“Since the first announcement of measures to go on a lockdown, consumer spending has been on a roller-coaster. While consumers were panic-buying in the days ahead of lockdown, overall consumer spending since the start of lockdown has been subdued. We witnessed a slight increase over the course of level 4 lockdown and expect this trend to continue improving into level 3,” said Makanjee

Meanwhile Chris Labuschagne, CEO of FNB Credit Card said they observed  spending was taking place in residential areas as opposed to malls.

“It’s been particularly interesting to see some of the popular spend buckets during this period. We’ve seen sustained activity in grocery shopping, particularly among merchants which are closer to residential areas compared to shopping malls. Some consumers spent on home improvement items as well as tech and digital, presumably for work and/or online schooling or kids entertainment during this period,” said Labuschagne.

CORONAVIRUS MONITOR