Trade conditions recover

Johannesburg - Trade conditions have recovered from a setback in August and September, the SA Chamber of Commerce and Industry (Sacci) said on Wednesday.

The Trade Activity Index (TAI) improved by five points.

“The sales volumes and new orders indices improved strongly on the September figures, while inventories declined in October,” it said in a statement.

“Supplier deliveries were well provided, while backlogs on orders increased given larger sales volumes and new orders.”

Sales and input prices rose faster in October.

“The price expectations indices on sales and inputs, however, eased somewhat at levels of 67 and 74 respectively,” it said.

“The lower fuel price rises, a slower rate of increase in other administered prices, and slowing prices for imported goods may contribute further to lower input inflation.”

Sacci said the stronger rand exchange rate could assist in curtailing further input cost escalation.

The seasonally adjusted trade expectations index (TEI) remained in positive territory at 59 in October.

“The outlook for sales volumes (negative two points), new orders (negative one point), and supplies (negative two points) points toward stickier trade conditions within the next six months,” it said.

“Inventories were also expected to decline, with the index losing five points.”

Employment conditions in the trade sector remained in positive territory at 53 compared to 54 for the index in September.

Employment prospects slipped as the index weakened marginally from 52 to 51 in October.

“The trade environment was less exposed to strikes than other sectors in 2013, although the disruption of trading by labour unrest negatively affected overall trade conditions.” - Sapa