Consumers in South Africa face strong headwinds, including a weakening labour market and restricted access to credit, while the important retail sector remains in recession, said Moody's Economy.com on Friday.

"Private consumption's contribution to economic activity will be much smaller this year. Residential construction and home sales are faltering as lenders tighten credit standards. Negative wealth effects are battering consumer confidence and constraining spending," they say.

The central bank is expected to continue to cut rates aggressively in coming months.

"Uncertainty about the direction of economic policy following next week's elections is a key risk," conclude the economists.

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