Publications
Partners
Johannesburg - Trade conditions did not improve in May but remained within positive territory, the SA Chamber of Commerce and Industry (Sacci) said on Thursday.
Sacci's Trade Activity Index (TAI) declined by five points between April and May 2013 to reach 56.
This followed a surge of five points between March and April 2013.
Sacci CEO Neren Rau said the trade sector appeared to be doing better than the broader economy.
Rau said trade conditions could be further hampered by tighter retail trade conditions and exports being under pressure.
"The decline... confirms the volatility in trade conditions under the present uncertain economic circumstances," he said.
The seasonally adjusted TAI dipped by eight points to 57 in May after improving by 11 index points in April 2013.
With economic growth declining to below 2% year-on-year, trade conditions were likely to come under strain for the rest of 2013.
Sales volumes and new orders also reversed their gains of 10 and eight index points in April 2013.
Supplier deliveries and backlogs on orders, however, slowed slightly in May 2013 with inventory levels increasing due to slowing sales volumes.
The pressure on sales prices remained high but stable with the index at 62 in April and May 2013.
The sales price index was three points above the 59 it reached in May 2012.
The input prices index was at 71 and exceeded the sales prices index by nine points in May 2013, indicating relatively high input cost pressures.
Trade prospects (TEI) for the six months hence remained positive, with the TEI on 61 in May 2013 compared to 64 in April 2013.
The seasonally adjusted TEI averaged at 62 for the first five months up to May 2013 and was the same average as for the first five months of 2012.
The outlook for input and sales prices eased as the indices decreased in May 2013 by four and five index points respectively, after reaching high levels of 73 and 83 in April 2013.
Employment conditions in the trade environment weakened in May 2013 with the index declining by three points to 49.
The index on six-month employment prospects also dipped by three points from the previous month to 51 in May 2013.
