JOHANNESBURG - South African households may be showing signs of recovery, but mounting job losses are raising questions about how sustainable that recovery really is.
The latest Altron FinTech Household Resilience Index has improved for a seventh consecutive quarter.
READ: 'Starved of opportunity' - Economist as SA's unemployment deepens
But that progress is being overshadowed by growing pressure on household incomes.
South Africa lost 190,000 formal-sector jobs in the first quarter, putting further strain on household finances.
As consumers turn to their savings to make ends meet, life insurance policy surrenders increased by 24 percent.
The report says households are feeling the impact of having fewer income earners, while warning that higher interest rates could put the recovery at risk.
Further interest rate cuts, however, could provide some relief to financially stretched households.