The retail sector trumped economists’ expectations and experienced a boost in August that could help the economy emerge out of the recession. Retail trade sales increased 2.5% year on year in August (R86.7bn) following a 1.3% lift in July (R82.2bn). A Bloomberg survey of economists expected a 0.1% contraction. The retail sector is an important indicator of consumer spending that accounts for about 60% of GDP and drives growth in the economy. The sector has been knocked hard in recent months by a weaker rand and higher oil price that has cut into disposable income. The growth figures in the sector so far in the third quarter are in stark contrast to the weak performance in the second quarter of the year that contributed to SA’s descent into a recession for the first time since the global financial crisis. Barring a shock in September, the sector should make a modest contribution to third-quarter growth. “If [growth is] sustained, it will bode well for the overall economy lifting out ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.