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September 17, 2024

Market Sentiment: Consumer Confidence

Market sentiment appears to be improving, as the latest Consumer Confidence index rose by 5 points from the second quarter to the third quarter of 2024. This increase aligns with the rise in Business Confidence observed during the same period.

The growing confidence in the economy is driven by several factors: the formation and initial operations of the Government of National Unity (GNU), better-than-expected economic growth in the second quarter, moderating inflation, reduced loadshedding, and the possibility of an interest rate cut by the Monetary Policy Committee (MPC) in September.

Higher overall confidence levels are promising for economic growth, as they may lead to increased demand and supply. This, in turn, could create investment opportunities and contribute to job creation, provided that this positive momentum can be sustained in the medium term.


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