Retail sales 'to recover in 2010'
23 September 2009
Retail sales continued to fall in July this year, though at a slower pace than expected, with economists predicting that positive growth was likely to resume in 2010.
Retail trade sales for July fell by 3.9% compared to the same time last year, Statistics South Africa (Stats SA) reported this week, with major contributors to the decline being retailers in the hardware, paint and glass sectors, as well as general dealers.
"Retail trade sales, at constant (2008) prices, for July 2009 reflected a decrease of 3.9% compared with July 2008," Stats SA said.
Positive economic growth
Nedbank economist Isaac Matshego told BuaNews that the decline had been much lower than the market had expected. He added that positive growth was likely to resume in 2010.
Standard Bank senior economist Johan Botha said the economy was still not performing well, and that a positive retail sales figure was expected towards the end of the year.
"Indications are that the impact of interest rate cuts will be felt by the end of the year, meaning that households will have more in their pockets," he said.
Wholesale trade
Stats SA also announced that wholesale trade sales for July 2009 fell by 13.8% year-on-year, and that the motor trade sales fell by 12.6% compared with the three months ended July 2008.
"Wholesale trade sales, at constant (2000) prices, for July 2009 decreased by 13.8% compared with July 2008. Wholesale trade sales, at current prices, for the three months ended July 2009 decreased by 16.0% compared with the three months ended July 2008."
Source: BuaNews
