'August sales up, but show retail sector still suffering hangover from riots'
Retail trade sales were up 4,9% in August 2021 after they fell by 11.1% in July on the back of riots and looting.
Year-on-year, retail trade sales decreased by 1,3% in August.
Statistics SA reports that the drop in sales was led by general dealers and retailers specialising in hardware, paint and glass, followed by household furniture, appliances and equipment.
#Retail trade sales declined by 1,3% y/y in August 2021, dragged lower mainly by general dealers and retailers specialising in hardware, paint & glass.— Stats SA (@StatsSA) October 13, 2021
Listen here for more: https://t.co/rToe3MsYnq#StatsSA pic.twitter.com/1fJIlbGyyx
Bruce Whitfield discusses the numbers with Siphamandla Mkhwanazi, Senior Economist at FNB.
No matter how you look at these numbers Siphamandla, the retail sector in South Africa is taking a huge amount of strain?Bruce Whitfield, The Money Show host
Mkhwanazi responds with a rueful chuckle, noting that the August numbers point out a number of things including that the sector is still suffering a hangover over from the July riots.
I think the affected workers would have spent cautiously after those riots and those that participated in the looting would have found very little need to go and buy groceries in August.Siphamandla Mkhwanazi, Senior Economist - FNB
The broader part is what it indicates about the strength of demand... It is telling us something about the lack of employment creation... We did see some improvement in some segments but overall there's weak demand at this stage.Siphamandla Mkhwanazi, Senior Economist - FNB
One way one can look at the strength of underlying demand is just to look at core inflation... having removed the volatile items such as food or electricity.. At around 3% it is sitting closer to the lower target band... It is one of the factors they look at in the interest rate decision... and an increase...Siphamandla Mkhwanazi, Senior Economist - FNB
Listen to Mkhwanazi's analysis on The Money Show:
This article first appeared on CapeTalk : 'August sales up, but show retail sector still suffering hangover from riots'
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