File: South African banknotes with Five Rand and Two Rand coins. GettyImages/RapidEye
JOHANNESBURG - Household finances in South Africa improved in the second quarter of the year, thanks to rising disposable income and easing debt costs.
Real personal disposable income grew by 0.9 percent, supported by higher investment income and lower inflation, despite weak job growth.
The debt-to-income ratio edged down to 62.4 percent, and debt servicing costs eased slightly.
Consumer spending rose as a result, while net wealth increased on stronger asset prices.
Looking ahead, Nedbank economists expect real wages to rise by 2.6 percent in 2025, though poor employment growth remains a concern.