Standard Bank economist Danelee van Wyk told BuaNews the drop in sales was worse than expected.
“It was worse than expected but then one has to take the contraction with a pinch of salt,” said Van Wyk, adding that the public holidays played a role in the drop.
“Consumers had days off and even though the malls were packed [during the public holidays] people did not go out and splash their money on items like furniture and microwaves,” she said.
The drop, she said, could also be attributed to the recent job losses experienced in the economy.
“People are concerned about job losses; so they are spending with caution. There is a conservative buying behaviour,” she said, adding that this was likely to continue for some time.
Van Wyk also predicted that the Reserve Bank's Monetary Policy Committee will cut interest rates further next week, when they are expected to meet.
Article published courtesy of BuaNews
