South Africa's consumer confidence improved in the first quarter, a survey showed on Tuesday, helped by a rebound among higher-income households, although the report warned the Middle East war could weigh on sentiment in the coming months.

The consumer confidence index, sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research, improved to a minus 7 points from minus 9 in the fourth quarter. 

“Unfortunately, the ripple effects from the Iranian war may well see a U-turn in high- and middle-income confidence during the second quarter,” said FNB Chief Economist Mamello Matikinca-Ngwenya. 

South Africa's central bank is due to announce its interest rate decision on Thursday, as it weighs the impact a weak stock market, falling rand and surging oil prices could have on the economy. 

The first-quarter survey, which was conducted before the conflict started in late February, showed improved confidence among high-income households supported by lower interest rates, soaring stock prices and a stronger rand exchange rate.

However, confidence among low-income households deteriorated further from the previous quarter, due to disappointing employment growth towards the end of 2025 and tighter compliance measures in the social grant system.