Trade conditions across various business sectors have remained weak in May. This is according to the latest trade conditions survey compiled by the South African Chamber of Commerce and Industry (Sacci).
It shows that Trade Activity Index recorded a reading of 40 in May compared to 39 in April. A reading below 50 indicates contraction in activity, while one above shows expansion.
“The respondents that came in show that the mining charter is not coming forward – we aren’t competitive anymore. The strong rand affect revenue; a lot of export is priced in US dollar. The other thing is the contract prices are under pressure. The fuel price and rand that’s weakening to some extent,” says Sacci’s Economist Richard Downing.