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
Updated 4 hours ago South Africa's rand was slightly weaker on Thursday following the US Federal Reserve's announcement that it would begin scaling back its massive bond-buying stimulus from January. The rand was at 10.3700 to the dollar at 0630 GMT, down 0.3% from Wednesday's New York...
Updated 5 hours ago The Federal Reserve on Wednesday embarked on the risky task of winding down the era of easy money, saying the US economy was finally strong enough for it to start scaling down its massive bond-buying stimulus. The central bank modestly trimmed the pace of its...
Updated 6 hours ago The South African government was committed to addressing the concerns identified in Fitch's Rating review, National Treasury said on Wednesday night. It said Fitch Ratings had earlier announced that it had affirmed the country's long term foreign and local currency...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Johannesburg-based locomotive solutions provider DCD Rolling Stock officially launched Phase 1 of its R240-million recapitalisation programme at its Boksburg manufacturing facility, last month.
Sales of electric cars should pick up once more such vehicles become available on the South African market, says Nissan South Africa (SA) chief marketing manager Ross Garvie. The local arm of the Japanese car company launched the country’s first fully electric...
Denel Land Systems’ (DLS) Mechem division is successfully marketing the latest version of its highly regarded Casspir mine-protected vehicle, the Casspir NG2000 series wide body ambulance. As its description says, this has a notably wider body than standard...
The infrastructure boom in Africa has seen investment in 322 megaprojects reach $222.7-billion, says professional services firm Deloitte in its ‘African Construction Trends’ report. Deloitte Southern Africa infrastructure and capital projects leader André Pottas...
ASME, the international engineering profession’s cooperative, educational and training, research, outreach and codes and standards development organisation (originally the American Society for Mechanical Engineers, founded in 1880), is seeking to improve the...