Trade conditions in South Africa picked up momentum between February and March 2006, the monthly trade survey by Absa and the SA Chamber of Business (Sacob) has found.

The results released on Tuesday indicated conditions were heading solidly into positive territory for the first half of the year.

There was a strong surge in sales volumes, while new orders, inventories and supplier deliveries also improved during March. Job prospects were still positive but moved sideways.

Selling and input price pressures remained high but appeared to be moving sidelong. Inflationary pressures therefore seemed to be marking time.

Trade expectations, although still robust, dipped marginally in March for the second consecutive month. Respondents' expectations in March 2006 were, however, higher than in March of both the previous years.

Current trade conditions improved substantially in March as the Trade Activity Index rose from 47 in January to 50 in February and to 56 in March 2006, the survey found.

Sapa

SA COMPANIES & BUSINESS INFO Trying to find your way around South Africa's corporate landscape? Looking for a info on a particular company or sector? After the latest business, financial or market news? Here's a quick directory of links to get you started.

MORE BUSINESS NEWS SA sees largest gold output drop Manufacturers labouring under rand Real Africa rejects Sun International SABMiller's beer volume up 5% Surge in insurance complaints Absa, Virgin in $33m venture Trade conditions pick up momentum Team to assess fuel windfall tax Gold and oil surge Cosatu campaigns against WTO deal Lonmin's shut down boosts platinum Massmart/Moresport merger blocked PwC in hot water over R&E R500m missing from JCI - CEO Telkom dives on R30bn spending plan