South Africa’s trade conditions remained constrained in March with the Trade Activity Index (TAI) of the South African Chamber of Commerce and Industry’s (Sacci’s) Trade Conditions Survey having decreased to 43 in March, from 44 in February.
The TAI was also three index points lower than in March 2017.
Retail trade notably remained constrained, with global trade prospects still positive, with commodity prices benefiting exports.
The stronger rand inhibited import rand prices while exports lost some competitive pricing edge.
Specific factors listed by respondents to have curbed trade activity were the increase in value-added tax to 15%, the higher fuel levy, strikes and property damage, and inappropriate skills in certain sectors.
However, respondents still had positive expectations from the new political leadership and its ability for economic policy formulation.
Sales volumes improved in March, with the subindex three points higher at 46, but the new orders index down by six points to 35.
Expected sales volumes and expected new orders were both lower – with sales having decreased from 64 to 58 and new orders from 63 to 51.
The sales price index measured 59 and the input price index 72.
The employment subindex declined to 42 in March, while the employment outlook index for the next six months also declined by seven index points to 46.