Fuel and vehicle sales declined 2.2% in the second quarter
Coupled with the retail and wholesale trade figures, motor industry figures indicate that SA likely suffered a recession in the first half of the year
Fuel and vehicle sales declined by 2.2% during the second quarter, increasing the likelihood that SA suffered a recession during the first half of 2018. The June motor industry sales figures released by Stats SA on Thursday followed its June retail and wholesale reports, which are all part of the trade component of GDP. Wednesday’s retail sales report showed it would contribute a 0.4% decline to the second quarter GDP compared to the same period in 2017. The quarter-on-quarter drop in retail sales was more severe at 1.7%, Investec Bank economist Lara Hodes said in a note on Wednesday. In the first quarter, trade declined by 3.1%, contributing to the country’s overall 2.2% quarterly drop in GDP. Earlier on Thursday, Stats SA reported wholesale trade would contribute a positive 0.1% to the second quarter’s GDP. Measured in rand, wholesale is larger than retail because it includes fuel. In current prices, Stats SA reported June’s total wholesale sales came to R174bn, retail sales came ...
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