SA's trade environment ‘less comfortable'
Thématique :
sud afrique
By Christy van der Merwe, Engineering News, 14 Nov 07
The South African Chamber of Commerce and Industry (Sacci) said on Wednesday that trade conditions were "tight" at the release of its Trade conditions survey for October 2007.
The trade activity index (TAI), which measures current trade conditions increased slightly by three points, from 50 points on August, to 53 in October, and this slight increase was in line with expectations, as retailers stock up on supplies as the holiday season approaches in South Africa.
"The trade expectations index (TEI) dipped substantially in October, to 58 points, well below the narrow band of between 66 and 69 points since February this year," Sacci stated.
"The TEI came down from very high levels, and the interest rate increase means reverting to lower levels of spending, which could contribute to lower expectations," Sacci economist Richard Downing told Engineering News Online.
"It is a less comfortable environment to trade in," he added.
The Chamber added that the new orders expectations sub-index also dropped to its lowest level of 60 points this year, and employment prospects also dipped to 52 points in October.
The sales price index increased to 64 points compared to 58 points in August, and the input price index increased marginally to 71 points.
"The expectations on selling and input prices increased substantially in October to 76 and 80 respectively," Sacci concluded.
The South African Chamber of Commerce and Industry (Sacci) said on Wednesday that trade conditions were "tight" at the release of its Trade conditions survey for October 2007.
The trade activity index (TAI), which measures current trade conditions increased slightly by three points, from 50 points on August, to 53 in October, and this slight increase was in line with expectations, as retailers stock up on supplies as the holiday season approaches in South Africa.
"The trade expectations index (TEI) dipped substantially in October, to 58 points, well below the narrow band of between 66 and 69 points since February this year," Sacci stated.
"The TEI came down from very high levels, and the interest rate increase means reverting to lower levels of spending, which could contribute to lower expectations," Sacci economist Richard Downing told Engineering News Online.
"It is a less comfortable environment to trade in," he added.
The Chamber added that the new orders expectations sub-index also dropped to its lowest level of 60 points this year, and employment prospects also dipped to 52 points in October.
The sales price index increased to 64 points compared to 58 points in August, and the input price index increased marginally to 71 points.
"The expectations on selling and input prices increased substantially in October to 76 and 80 respectively," Sacci concluded.
