Wealthy people are not spending says Absa
South Africa's most affluent consumers are increasing their levels of personal liquidity and postponing spending on expensive goods according to Business Report. It says that the Absa Private Bank analysis of customer behaviour shows that people are adopting a debt reduction strategy.
Gavin Opperman, chief executive of Absa Private Bank says the change in behaviour has had an impact on cash savings deposits and annuity-based investments. He says affluent consumers have adopted a "wait-and-see" attitude with regard to major purchases.
This has resulted in a sharp decrease in the buy-to-let sector of the property market and has also affected vehicle sales where consumers are taking longer vehicle finance contracts to aid their purchase of expensive vehicles.