South Africa’s (SA) consumer confidence improved in the first quarter, a survey showed on Tuesday, ​helped by a rebound among higher-income households, ‌although the report warned the Middle East war could weigh on sentiment in the coming months.

The consumer confidence ​index, sponsored by First National Bank (FNB) and ​compiled by the Bureau for Economic Research, ⁠improved to a minus seven points from minus ​9 in the fourth quarter.

“Unfortunately, the ripple effects from ​the Iranian war may well see a U-turn in high- and middle-income confidence during the second quarter,” said FNB ​Chief Economist Mamello Matikinca-Ngwenya.

SA’s central bank ​is due to announce its interest rate decision on Thursday, as it ‌weighs ⁠the impact a weak stock market, falling rand and surging oil prices could have on the economy.

The first-quarter survey, which was conducted before the ​conflict started ​in late ⁠February, showed improved confidence among high-income households supported by lower interest ​rates, soaring stock prices and a stronger ​rand ⁠exchange rate.

However, confidence among low-income households deteriorated further from the previous quarter, due to disappointing employment ⁠growth ​towards the end of 2025 ​and tighter compliance measures in the social grant system.

–Reuters–