Consumer spending on services soars

ZIMBABWE’S consumer spending on services has been growing largely due to increased activity in the economy, a top economist has said.
This comes as the majority of listed companies have been reporting improved sales volumes, despite a challenging operating environment.
“The other sector that is also expanding is consumer spending and the services industry. Our retail and food and beverage industries are all showing strong growth; this growth in personal disposable income is difficult to understand, but the physical evidence is unmistakable,” Economist Eddie Cross said in a recent interview with The Financial Gazette.

“Traffic levels have grown exponentially and are now putting pressure on road systems across the nation.
“In Harare alone, 1,5 million vehicles are active on its roads on a normal working day.”
Experts say the high-interest rates instituted by the central bank have somewhat achieved their objective, but have brought about reductions in consumer demand and need to be re