SOUTH Africans' vulnerability to financial constraints in the last three months of 2011 improved, despite the effects of unemployment.

This was revealed yesterday in the Consumer Vulnerability Index for the fourth quarter of 2011.

The index was established in 2009 to examine the vulnerability of consumers in income, expenditure, savings and debt servicing.

The index is conducted through a partnership between the University of South Africa and sponsors MBD Credit Solutions. It is not an indication of indebtedness but the security or vulnerability of consumers concerning their finances.

In the last quarter 114 key informants, the biggest credit providers, were asked about their credit book and their consumers' vulnerability.

The overall vulnerability shrunk from 4.42 in the third quarter to 4.33. Consumers showed less vulnerability to debt servicing which stood at 3.81. This could be attributed to the current low interest rates.

However, consumers felt they were susceptible to their income as the index showed 4.7.

"We have tried to establish what is its path of influence because eventually a person becomes fully vulnerable and we wanted to know what's that first trigger," said Carel van Aardt, research professor at Unisa.

"In 83% of the cases, the first trigger was the income situation and that can be explained in a sense that when you have got a 47% poverty rate and a 40% unemployment rate," he said.

Van Aardt said after analysing their most recent household surveys, they discovered a clear correlation between the actual income of the households and the level of income vulnerability.

He added that one of the biggest issues is the youth unemployment rate in South Africa.