Retail trade figures continue falling

Retail trade sales for August 2009 reflected a decrease of 7.0%, compared with August 2008. Retail trade sales for July also showed a decrease of 3.9%, compared with the same period last year.

Market consensus was that sales would fall at -3.2%. Retail trade figures fell by 3.9%.

“These are very weak numbers. While we are not surprised because of high number of job losses, they are a worry,” Nedbank economist, Isaac Matshego told BuaNews.

Standard Bank senior economist, Dr Johan Botha, said the number had been fairly shocking.

“People thought we were approaching the bottom of the cycle. I think what is clear is volatility in the numbers,” he said, adding that he had predicted sales to come in at -4%.

“Clearly job losses are a factor and people's disposable income is declining strongly. Consumer confidence is fragile,” he said.

Article published courtesy of BuaNews