SA's household finances improved in the second quarter and may pick up further, report shows

Data from fintech group Altron has shown that the ability of SA's households to take on and service debt improved a little in the second quarter of 2023, with some encouraging signs for the rest of the year, notably a recent easing in load shedding.

The Altron Fintech Household Financial Resilience Index (Afhri), compiled by economist Roelof Botha, picked up 0.4 points to 109 in the three months to end-June, helped by an improved employment picture, but still remained unchanged year on year.

The index figure means that SA's household finances are 9% more healthy than the first quarter of 2014, which is used as a benchmark, with Botha telling News24 that while a "marginal" increase may happen for the rest of the year, it isn't all good news. There is still pressure on households and businesses from what he says are overly restrictive interest rates, while debt costs as a ratio of household income could hit double digits in the next few months.