The latest South Africa Chamber of Commerce and Industry (Sacci) Trade Conditions Survey shows that trade conditions remain constrained, with the October Trade Activity Index (TAI) still in negative territory at 46.
The survey recorded a two-point month-on-month decline and a five-point contraction year-on-year in the seasonally adjusted TAI, confirming “tougher overall trade conditions” and “real trade constraints” in October.
“The tough trade conditions in September and October suggest a decline in the value added by the wholesale and retail trade, hotels and restaurants, as well as lower import and export volumes. New-vehicle sales and foreign trade, however, performed better than general trade conditions indicate,” Sacci said in a statement on Wednesday.
The seasonally adjusted Trade Expectations Index (TEI) remained stable, improving by one point to 51 in October.
“The markedly weaker rand against currencies of major trading partners, higher real interest rates and increased unemployment have fed negative trade prospects,” the organisation said, noting that it was expected that nominal interest rates would remain unchanged and leave the real cost of finance relatively high.