ECONOMIC WEEK AHEAD: Retail trade sales may offer some relief
The South African Chamber of Commerce will publish its trade conditions survey for July this week, writes Asha Speckman
A jobs bloodbath looms over the retail sector, but economic data expected this week may show that retail trade sales continued with a trend of positive growth in June. Some retailers are taking strain in the poor economic climate, with Pick n Pay recently announcing 3,500 retrenchments. But retail trade sales have long since turned the corner from the dismal -3.5% annualised growth recorded in the first quarter of 2017. By May, retail sales had risen for a fourth straight month and this was expected to continue into June, buoyed by "lower statistical base effects", economists said on Friday. The positive effect of moderating inflation on the purchasing power of consumers was another benefit, Elize Kruger, senior economist at NKC African Economics said. However, Johann Els, head of economic research at Old Mutual Investment, said the recent 25 basis point cut in rates was unlikely to benefit retail sales in the short term. "Even our anticipated 100 bps of rate cuts over the cycle wil...
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