Stats reflect spending slowdown

RETAIL SALES grew by 3.2% year-on-year (y/y) in July – but declined by 0.4% on a month-on-month basis, according to Statistics SA’s latest release. This data continues to reflect a slowdown in the growth of consumer spending, according to Rashika Lalla, economics researcher at Standard Bank. “Retail sales growth has been softer over recent months,” she told FTW, “from growing over 9% in April to 5.8% in June, and now 3.2% in July. “This has been largely expected as the stimulus provided by seven interest rate cuts since 2003 begins to wear off. But although growth in consumer activity may have slowed, consumer demand was still robust.”