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'August sales up, but show retail sector still suffering hangover from riots'

13 October 2021 9:01 PM
Tags:
The Money Show
Stats SA
Bruce Whitfield
Retail sales
Riots
unrest
Retail trade sales
Siphamandla Mkhwanazi
economic recovery

Retail trade sales were up 4,9% in August compared to July. Bruce Whitfield interviews FNB Senior Economist Siphamandla Mkhwanazi.
Image: Michal Jarmoluk on Pixabay

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.

RELATED: Manufacturing production rebounds, IMF revises SA economic growth upward to 5%

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.

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'




13 October 2021 9:01 PM
Tags:
The Money Show
Stats SA
Bruce Whitfield
Retail sales
Riots
unrest
Retail trade sales
Siphamandla Mkhwanazi
economic recovery

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