March 25 Reuters South Africa39;s firstquarter consumer confidence improved on the back of an uptick in the confidence levels of highincome households, suggesting retail sales volumes could gradually start to recover, according to a survey released on Monday.

The consumer confidence index CCI, sponsored by the First National Bank FNB and compiled by the Bureau for Economic Research, improved to minus 15 points from minus 17 points in the fourth quarter of 2023 and minus 23 points in the first quarter of 2023.

A breakdown of the CCI per household income group showed that highincome confidence, inclusive of those earning more than 20,000 South African rand 1,053.19 per month, rose from minus 19 to minus 14 points during the quarter, according to the survey.

Significantly lower levels of loadshedding and a deceleration in inflation particularly on the food price front likely supported consumer confidence during the first quarter, FNB Chief Economist Mamello MatikincaNgwenya said.

However, job losses in the fourth quarter and renewed fuel price hikes in February and March probably countered some of these positive developments, particularly for lowincome households. The tightening in fiscal policy announced in the February Budget Review probably also clipped consumer confidence.

Consumers also remain wary about splurging on bigticket items, suggesting that durable goods sales will underperform relative to the other consumption categories during the first half of 2024,…