South Africa’s 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 2015, data showed on Monday.
Releasing the data in Johannesburg, the South African Chamber of Commerce and Industry (SACCI) laid the blame on the difficult domestic and global economic environment.
The non-seasonally adjusted TAI declined to 45 in June from 49 in May 2015 and was worse than the 50 level in June 2014. 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, according to the chamber.
The sales volumes sub-index was on the edge of negativity at 50 after recording 52 in May 2015. New orders were notably lower after the sub-index decreased to 40 from 49 in May 2015.
It is estimated that export and retail trade volumes will remain under pressure due to trading partners experiencing more economic difficulties while households are under strain from unemployment and high debt levels.
Continuing problems with electricity supply restrained trade of consumer goods and services, said the chamber.
In contrast to softer present trade conditions (TAI), the seasonally adjusted trade expectations index (TEI) remained unchanged and in positive area at 58. Sales expectations increased by six points to 68 in June 2015, according to the chamber.
Employment in June was more negative with the sub-index at 42, compared to 46 in May. The six-month employment prospects index was stable at 47, the chamber said. Enditem