Annual retail trade sales growth slowed to 3.2% in October from 5.4% in September, Statistics SA reported on Wednesday. In rand, October's retail sales grew to R82.2bn, down from September's R82.3bn in current prices.
The retail sector is an important indicator of consumer spending, which drives growth in the economy. The highest annual growth rate of 15% was achieved by retailers that Statistics SA classified as "other", followed by pharmacies, which grew sales 5.7%, clothes retailers (5.5%) and furniture retailers (5.4%).
Seasonally adjusted retail trade sales decreased 0.1% month on month in October. This followed month-on-month changes of -0.4% in September and 2.6% in August.
Investec economist Kamilla Kaplan explained that decelerating inflation over the course of 2017 has provided some relief to households, but consumption growth continues to be constrained by a number of factors.
"These include tax increases, high unemployment, weaker income growth and modest rates of household credit extension. Moreover, persistently depressed consumer confidence has also impacted consumers' willingness to spend, particularly for big-ticket items," she said.
Both Kaplan and macroeconomics website Trading Economics projected retail sales at 5.1% year on year in October.
FNB chief economist Mamello Matikinca cautioned that there may be subdued growth in the sector as consumers probably deferred purchases in anticipation of Black Friday, which follows the US Thanksgiving holiday on the fourth Thursday in November.
Source: BDpro
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
