News24
14 Aug 2019, 17:43 GMT+10
Trade conditions in South Africa remained strained but stable in July.
This is according to the latest Trade Activity Index (TAI) released by the South African Chamber of Commerce and Industry (Sacci) on Wednesday.
The TAI increased by 2 index points to 40, its second highest level since February 2019. The highest level reached was 41 achieved in May 2019.
The Trade Expectations Index (TEI) declined by 6 points to 42 in July 2019.
"Respondents to the TAI survey toned down their expectations for the next six months, while respondents to the TEI expect all trade activity components to decline in the next six months except for sales prices that may still remain lower," Sacci said in a statement.
The expected lower sales prices result from the current strained trade conditions mainly due to pressure on business to push turnover volumes, according to Sacci.
Business confidence still lagging behind last year - Sacci
"Expected higher input costs continue to narrow profit margins and lower the return on investment in the trade sector. Lower trade activity caused the backlog on orders to decline substantially resulting in lower inventory holdings," it said.
Apart from trade activity indicators, a number of external factors were also mentioned by respondents as impacting on trade conditions.
These are high rental and staff costs; policy uncertainty; continuing labour unrest and industrial action; high electricity and water tariffs, and exchange rate volatility, are complicating trade activity.
Sacci also pointed out that the employment sub-index contracted somewhat in July 2019 to 40 index points from 42 in June 2019, while expected employment conditions in the sector are to weaken considerably as the sub-index declined from 45 to 36.
Get a daily dose of Sierra Leone Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sierra Leone Times.
More InformationNEW YORK CITY, New York: Bitcoin surged to a new all-time high this week, buoyed by growing institutional interest and a wave of pro-crypto...
SHENZHEN, China: As global chip competition intensifies, Huawei Technologies is exploring new markets in the Middle East and Southeast...
LONDON/NEW YORK CITY: American grocery bills may be headed higher as coffee and orange juice prices face upward pressure from new tariffs...
BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Dr Mohan Yadav attended the 'Madhya Pradesh Business Investment Forum Program'...
Harare [Zimbabwe], July 14 (ANI): Zimbabwe left-arm seamer Richard Ngarava became the top wicket taker for his national team in the...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Dr Mohan Yadav held wideranging interactions with industry experts for bringing...
Harare [Zimbabwe], July 14 (ANI): Known for his pace and crafty bowling, South Africa's Lungi Ngidi levelled legendary tearaway Dale...
Harare [Zimbabwe], July 14 (ANI): A fantastic three-wicket spell by all-rounder George Linde and a fiery knock from Dewald Brevis helped...
New Delhi [India], July 14 (ANI): Prime Minister Narendra Modi on Monday condoled the demise of former President of Nigeria, Muhammadu...