Retail sales are projected to contribute positively to third-quarter economic growth despite a slight moderation in September as the spotlight falls on consumption this week. The September reading, which Statistics SA will publish on Wednesday, is expected to have moderated from robust growth in August as several factors including hefty fuel price increases, have almost negated the boost from the Reserve Bank’s 25 basis point interest rate cut in July. NKC African Economics senior economist Elize Kruger forecast a slowdown to 5.4% year on year for retail trade sales in September. "Hefty fuel price increases should have strained trade sales during the month," Kruger said. Petrol rose by 67c/l and diesel by 44c/l . BNP Paribas economist Jeffrey Schultz, who has projected 4.6% year-on-year growth for September and 1.1% growth between September and August, attributed the possible slippage in September to "higher inflation and slightly softer household credit growth". "We should expect a...
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