Trade conditions remained under pressure in June, the South African Chamber of Commerce and Industry’s (Sacci’s) Trade Conditions Survey shows.
The Trade Activity Index (TAI) dipped by three index points to 38 in June, but the Trade Expectations Index (TEI) remained flat at 48 points.
All components of trade are expected to improve over the next six months except for sales volumes, which will remain subdued but still in positive territory, Sacci said in a statement on Wednesday.
Input and sales prices are expected to decrease further.
All components of present trade activity came under slightly more pressure in June, compared with May. However, input and sales prices eased in June.
Some respondents are considering closing down their businesses owing to the difficult economic conditions. Reasons cited include poor municipal service delivery, a strain on discretionary household spending and increases in electricity, fuel, water and other costs, Sacci pointed out.