The South African Chamber of Commerce and Industry (Sacci) Trade Activity Index (TAI) stood at 47 in July, reflecting “reserved” trade conditions, with the TAI still below 50.
The seasonally adjusted TAI, however, improved by a further two index points to 51 in July. This was three points higher than in July 2016.
Since March 2017, the seasonally adjusted Trade Expectations Index (TEI) had decreased by 11 index points after the index reached a high of 61 in February.
The seasonally adjusted TEI reached 50 in July, compared with 52 in July 2016.
“The slow-growing economy is leaving its mark on trade conditions, while challenging economic expectations continue to depress trade prospects.
“The subdued economic conditions, burdensome administration and red tape, tight market conditions, keen market prices and low disposable incomes are adding to the woes in trade conditions. The lower interest rates announced by the Reserve Bank provide some relief to trade conditions, but it needs a more vibrant economy to improve real trade conditions,” stated Sacci.
Edited by: Creamer Media Reporter
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