Interest rates were kept on hold in November last year while the petrol price decreases that began in August continued in December‚ which could have lifted consumer sentiment and spending. Retail sales are one of the indicators of consumer spending.
Retail trade sales increased by 3.4% y/y in December after increasing by a slightly revised 2.5% (2.6%) y/y in November. The 3.4% was the strongest y/y growth since January last year.
Barclays Africa economists said the 203‚000 jobs created in the fourth quarter could have played a role in lifting retail sales.
Sales‚ however‚ fell 0.2% month on month after increasing by 1.4% in November and 0.4% in October. Retail sales are very volatile on a month-to-month basis.
Stats SA said the main contributors to the 3.4% increase were general dealers who contributed 1.4 percentage points‚ and retailers in textiles‚ clothing‚ footwear and leather goods who contributed 1.3 percentage points.
The retailers that drove sales reflect a usual trend by consumers to stick to less expensive items during times of weak economic growth.
Seasonally adjusted retail trade sales increased by 1% in the fourth quarter of 2014 compared with the previous quarter and rose by 3.1% in the fourth quarter of 2014 compared with the fourth quarter of 2013.
The main contributors to the 3.1% increase were general dealers‚ and retailers in textiles‚ clothing‚ footwear and leather goods.
Source: BDpro via I-Net Bridge
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