FNB economist encourages more cautious spending behaviour in the months ahead [SOUND]

# FNB senior economist Siphamandla Mkhwanazi says the re-emergence of heightened geopolitical tensions, higher oil prices and the potential for higher borrowing costs suggest consumer budgets will remain under pressure. South Africa’s retail sales surprised to the upside in July, with growth accelerating to 3.4-percent year-on-year from 1.1-percent in June. Mkhwanazi says this suggests consumer spending held up better than expected, echoing the resilience already evident in quarter two gross domestic product data: