Local consumers feel very little relief

THOUGH consumers are slightly more optimistic than they were three months ago, they are still in the dumps.

The quarterly Consumer Confidence Index, released by FNB and the Bureau for Economic Research yesterday, ticked up by two points to -1. This indicates that more of the respondents are pessimistic than optimistic about economic prospects.

Cees Bruggemans, FNB's chief economist, said: "Consumer confidence remains at levels last witnessed at the onset of the global financial crisis in the second half of 2008."

Low confidence usually foreshadows weaker consumer spending.

In the past few years, South Africa has relied heavily on consumer spending to support economic growth. Rising debt levels and declining disposable income will put more pressure on consumers. - TJ Strydom

State pay model soon

THE Department of Public Enterprises was in the final stages of developing new remuneration standards for executive and non-executive directors of state-owned companies, Minister of Public Enterprises Malusi Gigaba said yesterday.

His department planned to finalise the framework by October and begin implementing it in the current financial year, though Gigaba stressed that changes to pay policies would have to be phased in to take into account existing employment contracts.

A moratorium has been placed on increases in executive pay of state-owned enterprises until the new framework has been finalised.

Gigaba said in terms of the new model remuneration would be based on various multipliers such as economic impact, the company's funding model as well as the complex environment within which the state-owned companies operate. - I-Net Bridge