Consumers thumped as disposable income shrinks relentlessly

Inflation is easing, interest rate cuts may only be a few months away, the outlook for food prices is positive, and unemployment figures have improved slightly, but many consumers are in the worst financial shape they’ve experienced for years, battered by high interest rates and increasing levels of debt.

"We haven't seen the tertiary sector perform this poorly so consistently for a very long time," said Gina Schoeman, managing director, SA economist, and head of research at Citi, referring to the services and retail sector of the economy, which is an indicator of the demand and financial health of consumers.