CONSUMER CONFIDENCE
Uptick in April retail sales figures ‘not sustainable’
Despite a grim performance in the first quarter, SA’s retail sector surprised on the upside in April, though depressed consumer confidence is expected to keep retailing constrained. According to Statistics SA, retail sales rose 1.5% year on year in April 2017 to R60.6bn. The data reflects overall spending as a driver of the economy. The Rand Merchant Bank and Bureau of Economic Research business confidence index released on Wednesday indicated that retail confidence had fallen by 10 index points to 35 in the second quarter based on weak consumer spending. Nedbank economist Johannes Khosa said though retail sales growth for April was stronger than expected, general domestic spending was weak and the recovery was patchy. The increase in sales growth in April was driven by general dealers and food retailers, which contributed 3% to total sales growth. Khosa warned, however, that strong retail sales growth is unlikely to be sustained in the months ahead. “Households are likely to be cau...
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