Trade conditions are approaching the same desperate levels experienced towards the middle of 2009 (following the recession of 2007/08), warns the South African Chamber of Commerce and Industry (Sacci).
This follows the chamber’s release of the December 2015 Trade Activity Index (TAI) of 39 points – down from the 42 points recorded in November.
“Real domestic final demand (GDE) and lower export volumes reflect a dull economic environment. The higher interest rates, the much weaker rand exchange rate, debt strapped consumers and the lower credit rating further add to depressed trade,” said Sacci economist Richard Downing.
He added that trade expectations for the next six months also remained subdued and confirmed the declining expectations in the second half of 2015.
