Jul 17, 2012
Trade conditions weaken in June – SacciBack
© Reuse this
The chamber said a weaker performance in retail trade, after robust increases earlier this year, had resulted in volatiliy in the seasonally adjusted Trade Activity Index (TAI), which lost seven points to measure 49 in June – down from 56 in May.
The nonseasonally adjusted TAI dipped to 48 in June, compared with 55 in May, but climbed by two from the comparative period last year.
“Volatility also marks the performance of sales and new orders which, after recovering strongly to 64 and 58 respectively in May, declined to 51 for both indices in June. A year ago the sales volume index was at 50 and the new orders index measured 43. The inventories index decreased to 50 from 51 in May, while supplier deliveries declined to 44 from 53,” Sacci said in a statement.
The indices for sales and input prices decreased further from 59 and 68 in May to 55 and 63, respectively, in June.
Price pressures moderated as weaker trade conditions made it more difficult to pass on rising costs. Administered prices, nevertheless, rose by an average of more than 11%.
“The combination of weaker trade conditions and increasing cost absorption by businesses is placing profitability under pressure,” Sacci stated.
Meanwhile, Sacci stated that the Trade Expectations Index (TEI) for the next six months would improve as it factors in the year end season. The TEI increased to 61 from 57 in May, 5 points higher than the 56 in June 2011.
The six-month outlook for key components of trade activity also lifted in June while expectations for sales and input prices eased further by one and two points to 60 and 66 from 61 and 68, respectively, in May 2012.
The volatile conditions also influenced expected inventory holdings as stock levels picked up in June after declining in May and April 2012. Expected supplier deliveries remained well in positive territory with the index at 58.
Employment conditions in the trade environment improved during June 2012 as the index moved from 41 to 44 in negative territory. The outlook for employment index moved from 49 to 50. The likelihood of improved levels of employment remains low.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Updated 2 hours 15 minutes ago Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Updated 2 hours 34 minutes ago Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
Updated 2 hours 35 minutes ago The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...