CAPE TOWN: Growth in retail trade sales accelerated to a four-month high of 3.5% in June compared with a year earlier from a slightly revised 2.3% (2.4%) in May, statistics SA data showed on Wednesday.
Sales had been expected to increase by 3.4% year on year.Higher activity among general dealers and clothing retailers supported the growth in sales. Figures showed that general dealers contributed 1.7 percentage points, while retailers in textiles, clothing, footwear and leather goods contributed 1.1 percentage points.
Barclays economists Peter Worthington and Miyelani Maluleke said in a research note that data such as weak credit growth and low consumer confidence pointed to a “more challenging” second quarter for consumers after the “fuel-spending boost” of the first quarter.
The fact that interest rates were raised last month could also see growth in retail sales slow somewhat as overindebted consumers carefully choose what to spend on amid stretched budgets. Seasonally adjusted retail trade sales increased by 0.1% month on month in June following a rise of 0.1% in May.
