Trade conditions worsen – Sacci
Trade conditions deteriorated further in June, says the South African Chamber of Commerce and Industry (Sacci).
Sacci’s Trade Activity Index (TAI), which measures present trade conditions, moved further into negative territory, at 37, compared with 40 in May. It was also 11 points lower than in June 2017.
“The current weak trade conditions are marked by 71% of respondents experiencing decreased sales volumes and 68% of respondents [experiencing] decreased new orders,” Sacci reported on Tuesday.
According to the survey, sales volumes are under severe pressure, with the subindex seven index points lower than the 36 measured in May.
New orders followed suit, with the subindex down by four points to 32 in June.
The subdued trade conditions are accompanied by rising sales prices, with 57% of respondents indicating rising sales prices, and the subindex remaining virtually unchanged in June.
The input price index also rose by three index points to 68 in June.
Sacci noted that respondents were disquieted about the depressed economy, political uncertainty, the weak rand exchange rate and the continued increase in fuel prices. Late deliveries and complementary businesses closing down, or shrinking their activities, also disrupt trade conditions.
Meanwhile, the Trade Expectations Index (TEI), which measures trade expectations for the next six months, moved into negative territory, at 49, compared with 51 in May.
Further, the employment subindex stayed in negative terrain at 45 points in June, while the six-month employment outlook index declined by two index points to 43 – “implying rigid employment conditions in the trade environment”.
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