Retail sales rose a tepid 0.7% year on year in June after increasing 1.9% in May, raising red flags about a technical recession in the second quarter. On a month-on-month basis, sales fell 1.2%. Economists had expected retail sales to increase by 2.2%. Reserve Bank governor Lesetja Kganyago has warned that lower consumer demand is hindering the country’s economic recovery. Alexander Forbes chief economist Isaah Mhlanga spoke to Business Day TV about the latest retail data and what it means for the economy.

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