Retail trade sales in South Africa improved in October according to data released by Statistics South Africa (StatsSA). Retail trade sales record a 2.2% increase on a year-on-year basis, after they increased at a revised year-on-year rate of 0.6% the previous month.
The figure is higher than expected.
The market had forecast an increase of 1.8% year-on-year in October’s retail sales. On a month-on-month basis, sales rose 0.6% in October.
The September month-on-month figure was revised to a contraction of 0.7% while, sales were up 1.8% in the three months to the end of October compared with the same period in 2017. The highest annual growth was recorded in the household furniture, appliances and equipment.
“This is the 18th consecutive month of positive year-on-year growth for furniture and appliances, retailers classified in miscellaneous goods experienced the second highest year-on-year growth in October, rising by 6.2% sectors specialising in pharmaceuticals recorded increase of 4.2% while clothing recorded rose by 3.4%,” says Statistics South Africa’s Keshness Naidoo.
Consumers have been under pressure from rising taxes and steep fuel price increases. The higher cost of living is believed to have eroded consumers of their disposable income. But petrol prices have decreased due to lower global oil prices. This may have freed up the consumer’s disposable income.
“Consumers have shown positive growth in October in terms of their spending, but it’s still lower than other months. August registered 2.5% due to the fact that consumers are spending more on fuel,” says Naidoo.
