Consumers are

TODAY’S column was to have covered the annual Old Mutual Savings and Investment Monitor, but Old Mutual had to move its presentation to the first week of next month so I’ll be covering that next week.

This week let’s look at another measure of how South Africans are coping financially – the quarterly Momentum-unisa Consumer Vulnerability Index.

The index and quarterly report form part of Momentum’s Science of Success campaign and are produced in partnership with Unisa. The compilers of the second-quarter index were Itumeleng Olien and Johann van Tonder from Momentum, and Jacolize Meiring and Professor Carel van Aardt from Unisa’s Bureau of Market Research. Their research incorporated the views of 96 key informants – including researchers, bankers, insurers, retailers, government departments, economists and financial analysts – who deal with consumers daily or specialise in consumer finance.

The index comprises four sub-components:

1. Income vulnerability: how secure a household’s income is, based on security of employment.

2. Expenditure vulnerability: the extent to which a household’s expenses may exceed its income.

3. Savings vulnerability: the extent to which a household is able to save.

4. Debt servicing capability: the extent to which a household takes on debt and is able to service that debt.

Scores range from 0 to 100, with 0 to 19.9 being “extremely vulnerable”, 20 to 39.9 being “very vulnerable”, 40 to 49.9 being “very exposed”, 50 to 59.9 being “mildly exposed”, and 60 and over being “secure” and “extremely secure”.

For the second quarter of this year, the overall score was 45.9, a drop from 49.7 in the first quarter.

The report notes: “The state of South African consumers’ personal