Trade conditions weak in September

Pretoria – Trade conditions remained weak in September, the South African Chamber of Commerce and Industry (SACCI) said on Tuesday.

“The results of the monthly Trade Conditions Survey for September 2011 indicate that overall trade conditions remained weak and have been in negative territory since April 2011,” said SACCI.

Present trade conditions reflected by the Trade Activity Index (TAI) deteriorated to a seasonally adjusted 45 from 48 in August 2011.

According to the TAI, the average of 47.8 for the first nine months of 2011 is 1.6 index points lower than the average of 49.4 for the first nine months of 2010.

The sales volumes index (at 49) fell into negative territory after recovering to 53 in August 2011, while the other components of trade activity were virtually unchanged although the employment index improved by two points to 47.

Expectations in the trade environment slipped slightly as the TEI (Trade Expectations Index) declined to 55 from 57 in August 2011.

Meanwhile, the outlook for sales, new orders and supplies for the next six months are slightly lower. Employment prospects remained unchanged at 49.

“Pressure on sales and input prices are expected to increase in the coming months. Although current sales prices were unchanged at 56, input prices increased by four index points to 67 from August to September,” said SACCI.

The six-month outlook for sales prices has increased from 62 in July 2011 to 68 in September 2011. Input price expectations increased by seven points from July to 73 in September 2011.

“Inflationary pressures are rising and will become more widespread, deriving from basic inputs such as fuel and public utility services. The latest weakening of the rand will also have adverse impacts on cost structures,” said the chamber. – BuaNews

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