THE dire trade climate is expected to persist for the first half of the year, presenting further bad news for job creation in the economy.
The situation will see traders hiking prices, which will squeeze South African consumers’ wallets even more.
The South African Chamber of Commerce and Industry’s (Sacci’s) trade survey, which gauges trading conditions, has had a slight rise, but remained at a low 41 points last month.
Sacci’s trade expectations index, which gauges the outlook for the next six months, was up three index points to 44 last month. However, a score below 50 indicates pessimism, while anything above points to optimism.
The results suggested economic activity was at a minimum and growth would take a while to "get back on track", said Sacci economist Richard Downing.
Traders also expect that input prices will remain high. In addition to the weak rand, respondents identified the prevailing drought conditions in the country as a major contributor to higher prices in the next six months.
However, soaring selling prices, Mr Downing said, would in turn be "a problem" for inflation.
Respondents cited constraining economic conditions, the socio-political environment and the business climate as the main inhibiting factors to trade.
Picture: THINKSTOCK
THE dire trade climate is expected to persist for the first half of the year, presenting further bad news for job creation in the economy.
The situation will see traders hiking prices, which will squeeze South African consumers’ wallets even more.
The South African Chamber of Commerce and Industry’s (Sacci’s) trade survey, which gauges trading conditions, has had a slight rise, but remained at a low 41 points last month.
Sacci’s trade expectations index, which gauges the outlook for the next six months, was up three index points to 44 last month. However, a score below 50 indicates pessimism, while anything above points to optimism.
The results suggested economic activity was at a minimum and growth would take a while to "get back on track", said Sacci economist Richard Downing.
Traders also expect that input prices will remain high. In addition to the weak rand, respondents identified the prevailing drought conditions in the country as a major contributor to higher prices in the next six months.
However, soaring selling prices, Mr Downing said, would in turn be "a problem" for inflation.
Respondents cited constraining economic conditions, the socio-political environment and the business climate as the main inhibiting factors to trade.
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