Trade conditions in South Africa improved faster than expected in April, in part owing to the Easter long weekend having shifted to March this year, the South African Chamber of Commerce and Industry (Sacci) reported on Wednesday.
It added that growth in new vehicle sales during the month also boosted trade conditions.
The chamber’s Trade Activity Index (TAI) improved by five points month-on-month to 61 in April, up from 56 in March.
The seasonally adjusted TAI, however, improved to 65 points in April, up 11 points on the 54 points recorded in March. Sacci noted that this indicated that the surge had gone beyond seasonal factors and the long-term trade survey trend.
Sales volumes and new orders, which increased by ten and eight index points respectively in April, were the main contributors to the rise in the TAI.
“Such levels were last registered during the intense trading period at the end of 2006,” Sacci stated.
Meanwhile, the Trade Expectations Index (TEI) increased by one point month-on-month to 64 in April, while the seasonally adjusted TEI improved by two points month-on-month to 64.
Employment conditions in the trade environment remained positive in April, with the index remaining constant at 52. The index on six-month employment expectations improved from 53 in March to 54 in April.