SA Economic Indicators Report updated:April 2016 Next update:May 2016

SA Economic Indicators Updated to end March © 2016 | How to read this report Depending on the indicator itself, data is released by the various institutions on a daily, monthly or quarterly basis. The frequency and release date has been indicated at the foot of each slide, next to the data source. These dates are indicative however, since the institutions may publish the data with a delay. Data lag: Data availability varies according to the data source, at times with a lag of a couple of months. e.g. Retail Trade Sales for July 2015 were released with a two-month lag in September 2015 GDP figures for Q2/2015 were released two months after Q2 (i.e. in August 2015) Readers are reminded to bear this data lag in mind when looking for parallels between indicators. It might therefore be necessary to go back to previous months’ reports in order to correctly analyse indicators over the same reporting periods. SA Economic Indicators What is the SA Economic Indicators report? Ti’s SA Economic Indicators report is a clear and easy-to-read view of the most currently available data for South Africa’s key economic indicators. Produced on a monthly basis by Ti Research, it draws on official information from various public and private institutions. The report is released in the first week of each new month, reporting on the available data up to and including the last day of the previous month. Page 2

SA Economic Indicators Updated to end March © 2016 | SA Economic Indicators Consumer Confidence Page 3 SOURCE: Bureau for Economic Research | Frequency: Quarterly | Release date: Q1 – April, Q2 – July, Q3 – October, Q4 – January Boom period – High levels of GDP growth 2008/2009 Recession CCI reaches 14- year low Consumers upbeat due to World Cup euphoria

SA Economic Indicators Updated to end March © 2016 | SA Economic Indicators Consumer Confidence COMMENTARY Consumer confidence worsened from -5 in Q3/2015 to -14 in Q4/2015, which can be attributed to the rapid deterioration in the rand and lack of confidence in the South African government This is just one point away from the 14.5 year low of -15 seen in Q2/2015 and is a strong indication of an extremely troubled economy Consumer confidence has not been positive for the entire 2015 year Key factors that influenced consumer negativity towards the economy during the quarter: - Rapidly depreciating exchange rate - Weak leadership visible in South African government - The possibility of even higher electricity prices - High maize prices - Ongoing drought - Tax increases - Rising unemployment - Economic instability in China - The ongoing possibility of a further increase in the prime lending rate This negative sentiment signals a greater reluctance to spend and use credit, behaviour that will be unsupportive of economic growth while most consumers believe that South Africa’s economic prospects will deteriorate further over the next year Page 4

Maryla Masojada|Head Analyst Tarryn Butler|Senior Retail Analyst Tabang Mbenge|Junior Retail Analyst