The South African Chamber of Commerce and Industry’s (Sacci’s) Trade Activity Index (TAI) improved by two points in September, breaking through the 50-index-point mark and into positive territory.
The TAI improved from 49 in August to 51 in September.
September’s seasonally adjusted TAI measured at 52 – the same as in August and five points higher than in September 2015.
“Respondents raised less concerns than in August, although delays and compliance costs of the regulatory environment, uneven application of regulations and some government inefficiencies, are adding to trade challenges,” Sacci said in its trade conditions update.
The organisation reported that the new orders subindex had declined by one point to 48, while the employment subindex contracted by four index points to 50 in September.
The input price subindex increased by three points to 64.
“All the other components improved on the August levels, with notably sales volumes at 55 increasing from 50 in August,” Sacci commented.
The Trade Expectations Index remained unchanged with the seasonally adjusted and nonseasonally adjusted index settling on 59 and 60, respectively.
Sales volumes and new orders were both at all-year highs at 69 and 65 respectively in September, and only supplies and employment declined month-on-month, with supplier deliveries slipping to 52 and employment prospects falling into negative territory at 48.
“Inflationary expectations on inputs, at 72, as well as selling prices, at 64, have receded somewhat, but still remain high,” Sacci concluded.