Pace of growth in retail sales slows in January
by Palesa Tshandu,
2016-03-16 14:55:29.0
THE pace of growth in retail trade sales slowed in January as the poor trading conditions and the embattled economy took their toll, data released by Statistics SA showed on Wednesday.
In real terms retail trade sales increased 3.1% year on year in January 2016 compared with a 4.1% year-on-year increase in December 2015, while seasonally adjusted sales decreased by 0.3% month on month.
According to a Trading Economics, growth was expected to come in at 3.8%.
Investec chief economist Annabel Bishop said: "The slowdown in economic growth has seen an impact on consumers, as real gross national income per capita has fallen since 2012, while consumer confidence is depressed."
Ms Bishop, citing a survey from the South African Chamber of Commerce and Industry (Sacci), added that muted trade conditions were likely to continue and that "constraining economic conditions, law and order, the sociopolitical environment and the business climate were cited by respondents as the main inhibiting factors".
Stats SA reported that the main contributors to the 3.1% increase were other general retailers, which contributed 1.1 percentage points, while general dealers contributed 0.7 percentage points and textile and clothing retailers contributed 0.6 percentage points.
The South African Reserve Bank is due to release their policy decision on Thursday, which may put further pressure on consumers after the 50 basis point hike in January.
Picture: THINKSTOCK
THE pace of growth in retail trade sales slowed in January as the poor trading conditions and the embattled economy took their toll, data released by Statistics SA showed on Wednesday.
In real terms retail trade sales increased 3.1% year on year in January 2016 compared with a 4.1% year-on-year increase in December 2015, while seasonally adjusted sales decreased by 0.3% month on month.
According to a Trading Economics, growth was expected to come in at 3.8%.
Investec chief economist Annabel Bishop said: "The slowdown in economic growth has seen an impact on consumers, as real gross national income per capita has fallen since 2012, while consumer confidence is depressed."
Ms Bishop, citing a survey from the South African Chamber of Commerce and Industry (Sacci), added that muted trade conditions were likely to continue and that "constraining economic conditions, law and order, the sociopolitical environment and the business climate were cited by respondents as the main inhibiting factors".
Stats SA reported that the main contributors to the 3.1% increase were other general retailers, which contributed 1.1 percentage points, while general dealers contributed 0.7 percentage points and textile and clothing retailers contributed 0.6 percentage points.
The South African Reserve Bank is due to release their policy decision on Thursday, which may put further pressure on consumers after the 50 basis point hike in January.
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