Trade conditions remained in negative territory and under pressure in June with the seasonally adjusted composite Trade Activity Index (TAI) measuring 46 – down from 48 in May, according to data released by the South African Chamber of Commerce and Industry (Sacci) on Monday.
Sacci commented that contractions in trade conditions were mainly due to the difficult domestic environment. Even though trade conditions contracted further in June, trade expectations for the next six months remained stable and positive with the Trade Expectation Index (TEI) at 58.
The sales volumes sub-index was on the edge of negativity at 50 after recording 52 in May. New orders were notably lower after the sub-index decreased to 40 from 49 in May.
Estimates indicate that export and retail trade volumes remain under pressure due to trading partners experiencing more economic difficulties while households are under strain from unemployment and high debt levels.
Furthermore, continuing problems with electricity supply have restrained trade of consumer goods and services.
Softer trade volumes in June but outlook positive
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