Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: A recovery in consumer sentiment coupled with VAT cuts, low inflation and low interest rates
will drive passenger vehicle sales in 2016, while the government's expansionary fiscal policy and
investment geared towards ramping up infrastructure will increase the demand for commercial vehicle
sales. This growth will drive total vehicle sales up by 11.7% to 134,265 units in 2016.
? Growing consumer sentiment started translating into an increase in major purchases such as new autos,
following a period of restraint by consumers.
? Government's current pro-cyclical fiscal policy will support infrastructure and boost commercial vehicle
? Significantly weak inflationary pressures will remain in place throughout 2016, thereby improving
consumers' buying power.