SA trade conditions still strong

JOHANNESBURG – South Africa continued to enjoy stable and strong trade conditions in March, unchanged from the previous month, a survey showed yesterday.

The monthly trade conditions index compiled by ABSA Bank and the South African Chamber of Business (SACOB) was unchanged from February’s 58 index points. The trade activity index measured 52 points in January.The index measures sales volumes, new orders, supplier deliveries, inventory levels and employment of wholesalers and retailers.Absa chief economist Christo Luus said despite rising credit demand, higher fuel prices and headline consumer price inflation, trade conditions remained buoyant.”Usually higher credit demand and fuel prices could have a psychological impact because they are associated with higher interest rates, and business people would be sensitive to that,” said Luus.”But trade conditions remained buoyant despite a threat of higher interest rates and business people were vindicated when the reserve bank left them unchanged,” he added.SACOB said the trade expectation index – which measures prospects over the next six months – fell to 67 index points in March from 69 points in February.”The fact is that we still have substantial demand and spending power has not diminished, so evidently producers involved in durables have had good conditions for the past three years and we are not expecting that to change soon,” Luus said.Nampa-ReutersThe trade activity index measured 52 points in January.The index measures sales volumes, new orders, supplier deliveries, inventory levels and employment of wholesalers and retailers.Absa chief economist Christo Luus said despite rising credit demand, higher fuel prices and headline consumer price inflation, trade conditions remained buoyant.”Usually higher credit demand and fuel prices could have a psychological impact because they are associated with higher interest rates, and business people would be sensitive to that,” said Luus.”But trade conditions remained buoyant despite a threat of higher interest rates and business people were vindicated when the reserve bank left them unchanged,” he added.SACOB said the trade expectation index – which measures prospects over the next six months – fell to 67 index points in March from 69 points in February.”The fact is that we still have substantial demand and spending power has not diminished, so evidently producers involved in durables have had good conditions for the past three years and we are not expecting that to change soon,” Luus said.Nampa-Reuters