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Johannesburg - Trade conditions were negative in April, according to the SA Chamber of Commerce and Industry (Sacci) Trade Activity Index (TAI) released on Thursday.
"Current trade conditions, as reflected by the TAI, declined into negative territory from 54 in March 2011 to 45 in April 2011," Sacci said.
However, April's index was an improvement over April 2009 when the TAI level was 32. The largest decline was seen in the sales volume index, down to 46 in April from March's 61.
"All the components of trade activity, except for selling prices, experienced declines," Sacci said.
The TAI is a composite index of sales volumes, new orders, supplier deliveries, inventory levels and employment.
A reading of 50 shows a "no change" situation and above 50 indicates a positive level, while below 50 is negative.
Trade expectations were still positive with the trade expectations index (TEI) at 63. The TEI is a composite index of expectations on sales volumes, new orders, supplier deliveries, inventory levels and employment.
The sales expectations index was 73 and the new orders expectations index increased slightly to 68.
"The expectations indices on supplier deliveries and inventories maintained roughly unchanged at levels of 56 and 54 respectively in April 2011," Sacci said.
The price expectations index on sales was down five points to 67, while inputs was down four points to 74.
"This is indicative of a temporary easing of inflationary pressures. The increase in the diesel price (23% year-on-year) and the tariff increases in public utilities (around 25% year-on-year) still point to building price pressures."
The employment conditions index in the trade environment deteriorated by two points to 45 in April. This was still better than two years ago, when it measured 39 in April 2009.
"Current trade conditions, as reflected by the TAI, declined into negative territory from 54 in March 2011 to 45 in April 2011," Sacci said.
However, April's index was an improvement over April 2009 when the TAI level was 32. The largest decline was seen in the sales volume index, down to 46 in April from March's 61.
"All the components of trade activity, except for selling prices, experienced declines," Sacci said.
The TAI is a composite index of sales volumes, new orders, supplier deliveries, inventory levels and employment.
A reading of 50 shows a "no change" situation and above 50 indicates a positive level, while below 50 is negative.
Trade expectations were still positive with the trade expectations index (TEI) at 63. The TEI is a composite index of expectations on sales volumes, new orders, supplier deliveries, inventory levels and employment.
The sales expectations index was 73 and the new orders expectations index increased slightly to 68.
"The expectations indices on supplier deliveries and inventories maintained roughly unchanged at levels of 56 and 54 respectively in April 2011," Sacci said.
The price expectations index on sales was down five points to 67, while inputs was down four points to 74.
"This is indicative of a temporary easing of inflationary pressures. The increase in the diesel price (23% year-on-year) and the tariff increases in public utilities (around 25% year-on-year) still point to building price pressures."
The employment conditions index in the trade environment deteriorated by two points to 45 in April. This was still better than two years ago, when it measured 39 in April 2009.
