PODCAST | November retail sales data show marginal increase thanks to Black Friday, says FNB

Retail sales figures for November are the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Siphamandla Mkhwanazi, FNB senior economist.

After two consecutive months of decline, retail sales increased marginally by 0.4% year on year in November, assisted by Black Friday shopping activity, says FNB.

Despite the increase, Mkhwanazi says the overall picture reflects waning resilience by households against a number of consumer headwinds including rising interest rates, the higher cost of living and increased load-shedding.

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“We note that households have been accumulating unsecured (consumption) credit more rapidly in the past few months following a pandemic-related deleveraging trend,” he says. 

In November, unsecured credit, comprising general loans and advances, credit cards and overdraft facilities, was pushed up to 8% year on year, the quickest pace since March 2020.

Topics of discussion include: retail figures for November 2022; the economic health of households and consumers; growth in unsecured credit; and an outlook for 2023 as interest rates are expected to come down.