Retail sales increase 3.3% y/y in October

Retail sales growth is recovering despite concern about slow consumer spending due to the weaker rand.

Retail trade sales increased 3.3% in October 2015 compared with a year ago, after increasing by an upwardly revised 3% (2.7%) in September. The October figure beat market expectations of 2.5%.

Statistics SA released the data on Wednesday.

Sales of retailers in pharmaceuticals and medical goods, cosmetics and toiletries (8.5%), all other retailers (6%), and retailers in textiles, clothing, footwear and leather goods (4.8%) rose the most.

Monthly, retail sales went up 0.2%, after falling 1.7% in September.

Retail sales year on year in SA averaged 4.98% from 2003 until 2015, reaching a record high of 15.50% in September 2006 and a record low of -6.20% in April 2009.

Overindebtedness, rising inflation and interest rates continue to weigh on consumers' disposable incomes.

Source: BDpro