South Africa-based Spark ATM Systems says cash withdrawals in South Africa are going up.
According to the Spark Cash Index — which tracks cash use and ATM activity in South Africa based on consumer responses to survey questions — average cash withdrawals during February 2010 were up 8.3 percent over the previous year, representing record growth, Spark ATM says. (View the Index for February.)
The index, which tracks and provides real time consumer data, shows that average cash withdrawals for February were slightly down from January's average but remained in line with 2009 pre-Christmas levels. Marc Sternberg, managing director of Spark ATM Systems said, "This is an annual trend seen over the past three years, since the index's inception."
Notably, February 2010 delivered the largest year-on-year increase, providing evidence, Spark ATM says, that consumers are resuming their spending habits.
Spark ATM Systems expect this trend to continue into the rest of 2010 as a result of a number of positive factors:
- Renewed consumer confidence
- Increased retail sales across relevant retail segments that host our ATMs
- Higher inflation over the past 18 months, resulting in an increased cost for the average basket of goods
- Lower interest rates resulting in increased disposable income for the average South African household
