Consumer confidence edged lower in the fourth quarter of 2008, First National Bank and the Bureau of Economic Research said on Tuesday.

The FNB/BER consumer confidence index (CCI) declined by 3 index points --from -1 during the third quarter of 2008 to -4 during the fourth quarter of the year.

"A reading of -4 indicates that there are currently more pessimists than optimists," FNB and the BER said.

The index found that the financial market turmoil reduced the high income group's (R5 000+) confidence in the economy's ability to continue performing well and curbed the very high income group's (R10,000+) expectancy of further big improvements in their own financial positions.

However, the confidence of consumers earning less than R10,000 per month remained steady, as the dampening effect of fears about job security on confidence was cancelled out by the enhancing effect of the decline in the petrol price.

Both the high and low income group continued to appraise the present as an unsuitable time to buy durable goods.

The index showed that the confidence of the top end of the market took a knock.

"Sales to this group face more difficult times, as this group has become less willing to buy than previously," FNB and the BER said.

The willingness to buy of the middle and lower end of the market remained steady -- the decline in the petrol price boosted the ability to buy of the middle group.

"So, sales to these groups have thus far been sustained."

However, sales to these groups could face a downward adjustment when private sector job cuts took their toll, FNB and the BER's research indicated.