Trade activity weakens in April, businesses under pressure – Sacci

16th May 2018

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

Trade conditions weakened in April, with the South African Chamber of Commerce and Industry (Sacci) Trade Conditions Survey’s Trade Activity Index (TAI) measuring 39, down from 43 in March.

The prevailing tight trade conditions are reflected in lower sales volumes, weak new orders and declining supplier deliveries.

“The current trade conditions are more restrained than in April 2017, with the TAI measuring six index points lower in April than a year ago.

“Trade expectations are better than a year ago, with the Trade Expectations Index at 54 points, which is two index points above the April 2017 level,” Sacci pointed out.

Respondents to the survey indicated that the fuel price increase affected turnover and put profit margins under pressure. Bigger clients are also lengthening the credit cycle, thereby influencing cash flow.

“Many businesses have become dependent on exports, owing to the regulatory environment in South Africa often being difficult, but with the stronger rand reducing rand income.

“The requirements to adhere to ownership prescriptions in South Africa are having negative effects on manufacturing businesses. The increase in value-added tax to 15%, the higher fuel levy, strikes and looting and property damage at certain locations, had a negative effect on trade activity,” Sacci stated.

Moreover, Sacci reported that sales volumes slipped in April, with the subindex 11 points lower at 35, down from 46 in March, but with the new orders index only slightly down by one point to 34.

Expected sales volumes and expected new orders were both higher at 61 and 54 points, respectively.

Sacci said inventories are anticipated to decline to 48 from 53 points over the next six months.

The employment subindex improved by one point to 43 in April, while the six months’ employment outlook index increased by six index points to 52 in April. The employment subindices, however, remain erratic, said Sacci.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION