Absa Merchant Spend Analytics Report :
May 2025

After a dip in April, card spending experiences a slight uptick in May, but restraint defines consumer behaviour. While this growth is a welcome sign, it’s important to note that the 2% month-on-month increase remains below the current inflation rate, suggesting that spending power is still facing headwinds.

A notable entry into the top 10 core categories for the first time was the category of Government, which replaced Tourism. This shift is strongly linked to heightened card spending in the Electric, Gas, Sanitary and Water Utilities sub-category. A spending shift like this stems from both the seasonal effects influenced by colder weather and Eskom’s annual tariff adjustments implemented in April. Other notable entries include transport, education and gambling. This turnaround reflects the impact of seasonal trends, and rising
electricity costs – all shaping South Africa’s evolving economic landscape.

Importantly, May also coincided with South Africa’s national Savings Month, further underscoring the importance of responsible budget management and financial planning during times of economic strain.