ABSA: Consumer Financial Vulnerability Increased in 2Q 2015

For your information, attached the 2nd quarter 2015 results on the Consumer Financial Vulnerability Index (CFVI) and its sub-components, as compiled by the Bureau of Market Research.

The CFVI dropped to a level of 50,8 in the 2nd quarter of the year from 52,7 in the 1st quarter on the back of economic developments impacting the household sector. This brought consumers close to the level of being financially very exposed. Against the background of increased financial vulnerability, consumer confidence dropped to its lowest level in 14½ years in the 2nd quarter of 2015. Based on the outlook for the economy and household finances over the next 12-18 months, consumer financial vulnerability is not expected to show a marked improvement over this period.

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