Economy

SA retail trade sales show growth

16 August 2012

Retail trade sales increased by 8.3% year-on-year in June 2012, Statistics South Africa (Stats SA) said on Wednesday.

Market expectation was that sales would rise by 4.7%.

"The highest annual growth rates were recorded for retailers in textiles, clothing, footwear and leather goods which grew 16.4% and retailers in pharmaceutical and medical goods, cosmetics and toiletries which grew 8.7%," Stats SA said.

Measured in real terms, seasonally adjusted retail trade sales increased 1.9% in June compared to May. This followed month-on-month changes of -0.6% in May 2012 and 1.2% in April 2012.

Retail trade sales for the second quarter of 2012 also reflected an increase, growing by 5.4% compared to the same period of 2011.

Nedbank economists said that despite an interest rate cut in July, high existing debt levels, tighter lending standards and rising cost pressures will continue to weigh on consumers.

"Our expectation is for consumer spending to lose momentum in the months ahead. Our forecast for household consumption expenditure growth for 2012 is 3.5%," the bank said.

"The MPC's next move will depend on whether the combined global monetary stimulus sparks some recovery later in the year [in which case rates will remain stable] or whether the global economy slips into recession [expect further easing]."

Source: SANews.gov.za



	With over 1 400 stores in 11 Southern African countries employing more than 14 000 people, PEP is the biggest single-brand retailer in Southern Africa (Photo: PEP)