Johannesburg - South Africa’s trade conditions worsened in June due to domestic and global economic pressure, which caused the Trade Activity Index to slip from 48 points in May to 46 in June.
The index is compiled by the South African Chamber of Commerce and Industry (SACCI) and was released on Monday.
There is some optimism amid the gloom as the Trade Expectations Index, which looks at trade conditions six months ahead, was well into positive territory at 58 points. An index reading of above 50 points is positive and one below 50 points is negative.
On the Trade Activity Index of the sales volume sub index fell from 52 to 50 points while the new sales orders sub index plummeted form 49 points in May to 40 in June.
“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,” SACCI said in a statement.
The chamber noted the “continuing problems with electricity supply restrained trade of consumer goods and services”. Thus while the supplier deliveries index improved from 45 to 46, with supplies proving not to be a serious limiting factor to trade, the inventories index declined by seven points to 47 in June 2015.
The employment sub index fell from 46 points to 42 while the employment expectations, which forecasts six months ahead, was stable at 47 points.
ANA