• SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

  • Platinum handshake

    Officials who try to do what's right risk far more than blessed wrongdoers, says Solly Moeng.

All data is delayed
Loading...
See More

December retail sales at 2.3%

Feb 13 2013 14:13
Reuters

Johannesburg - Growth in South Africa's retail sales slowed to 2.3% year-on-year in December from a revised 3.6% in November.

Economists had expected subdued sales over the month, with growth forecast at 1.2%.

On a month-on-basis basis, Stats SA said sales were up 1% in December, and increased by 2.3% in the last quarter of 2012 compared with the same period a year ago.

Anisha Arora, analyst at 4Cast said: "The importance of retail sales reflects the health of households' consumption and expenditure, so with the release showing that seasonally adjusted retail trade was down by 0.2% quarter-on-quarter in Q4, South Africa will again be relying on government spending and fixed investment to sustain positive GDP growth.

"We don't expect the retail figures will ease the environment for the MPC to cut rates, especially when inflation risks are somewhat on the upside with the new basket weightings coming into effect from next week's January CPI data."

Peter Attard Montalto, economist at Nomura said: "This number continues to indicate that there was some underlying strength into the end of the year in the economy though much of this is probably credit-supported.

"We are also seeing the impacts of a strong wage round with large real wage increases - before the story of 2013 hits, which will be falls in employment, in farming and mining in particular.

"This number has no effect on our view of rates on hold this year. This last piece of Q4 data puts our GDP bean count estimate at 2.1%-2.2% year-on-year."

Slowing growth in sales adds to signs that fourth quarter economic growth should be weak.  

Retail sales averaged 5.9% last year, compared with 5.1% in 2010. Analysts expect sales growth to slow further this year as higher fuel and food costs curb non-essential spending.

Consumer spending underpinned economic growth in the last half of 2011 as demand sectors grew.

Statistics South Africa has drawn recent months' data from a fresh 2012 sample, replacing the previous year's sample.

The rand firmed to R8.8970 against the dollar by 11:28 GMT from R8.9150 before the data was released at 11:00 GMT. 

The yield on the 2026 benchmark bond rose to 7.30% from 7.275% prior to the release while that for the shorter-dated 2015 issue climbed 1.5 basis points to 5.34%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

retail sales

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote

Loading...