South Africa's first-quarter consumer confidence improved on the back of an uptick in the confidence levels of high-income households, suggesting retail sales volumes could gradually start to recover, according to a survey released on Monday.

The consumer confidence index (CCI), sponsored by the First National Bank (FNB) and compiled by the Bureau for Economic Research, improved to minus 15 points from minus 17 points in the fourth quarter of 2023 and minus 23 points in the first quarter of 2023.

A breakdown of the CCI per household income group showed that high-income confidence, inclusive of those earning more than R20 000 per month, rose from minus 19 to minus 14 points during the quarter, according to the survey.

"Significantly lower levels of load-shedding and a deceleration in inflation - particularly on the food price front - likely supported consumer confidence during the first quarter," FNB Chief Economist Mamello Matikinca-Ngwenya said.

"However, job losses in the fourth quarter and renewed fuel price hikes in February and March probably countered some of these positive developments, particularly for low-income households. The tightening in fiscal policy announced in the February Budget Review probably also clipped consumer confidence."

Consumers also remain wary about splurging on big-ticket items, suggesting that durable goods sales will underperform relative to the other consumption categories during the first half of 2024, the survey added.