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Johannesburg - South Africa's retail sales grew by 6.1% year-on-year (y/y) in October at constant prices, indicating that the recovery in consumer spending was continuing.
The figure was largely steady compared with September, but is expected to quicken in coming months as interest rate cuts filter in to support demand.
The 6.1% increase in October was marginally higher compared with a slightly downwardly revised 6.0% increase in September, Statistics South Africa said on Wednesday.
Growth was 5.6% in the three months to September, compared with the same period a year ago.
A Reuters poll on Monday showed economists expected October retail sales to expand by 6.0% y/y.
"I think it (data) is indicating to us that there's some stability creeping into the retail sales numbers and hopefully indicating to us that consumer spending is on a continuation of an upward trend," KADD Capital economist Elize Kruger said.
"I think with the supportive factors of very low interest rates, inflation at quite a low level and real increases in wages, there should be a continuation of an upward trend in retail sales into 2011."
Retail sales, which helped drive economic growth between 2003 and 2007, have gradually recovered after South Africa came out of last year's recession, during which nearly a million jobs were lost.
Demand has partly been boosted by 650 basis points of reductions in interest rates since December 2008, as the Reserve Bank attempted to boost the economy.
