South African consumers remain optimistic about their personal finances, despite ongoing concerns about inflation and economic volatility.

According to TransUnion’s Q2 2024 Consumer Pulse Study, 72% of consumers expect their incomes to rise in the next year, only slightly down from 76% in Q1 2024.

This optimism persists even as 77% of consumers cite inflation for everyday goods as their top financial concern.

Key Findings:

Despite a reduction in inflation to 5.2% in April 2024, it remains above the South African Reserve Bank’s midpoint range of 4.5%, with many economists predicting it will stay elevated. Interest rates and job security are also significant concerns for 55% and 52% of consumers, respectively.

As many as 71% of consumers are optimistic about their household finances over the next year, with 63% confident in their ability to meet debt obligations.

However, 37% anticipate difficulties in servicing their current debt, particularly among Gen X and Millennials.

In response to financial uncertainty:

Impact on Discretionary Spending

Access to credit is critical for financial inclusion, with 91% acknowledging its importance. However, only 38% feel they have sufficient access to credit, with Millennials leading at 47%.

Among Gen Z, 41% plan to apply for new credit or refinance existing credit, but only 32% believe they have sufficient access. Popular credit products among Gen Z include personal loans (35%), credit cards (26%), and student loans (25%).