Johannesburg - The
Trade Activity Index (TAI), which reflects current trade conditions,
increased marginally by one index point to 49 in July, the
SA Chamber of Commerce and Industry (Sacci) said on Thursday.
"Trade conditions remained subdued in July 2010," Sacci added in a
"However, the TAI is nonetheless seven index points better than in
July 2009 but seven points lower than the 56 of March 2010."
According to Sacci, the major sub-indices of trade activity improved
only slightly in July, while the backlog on orders, lower inventories
and a weak employment environment constrained trade conditions.
The sub-index on sales volumes gained four points and the sub-index
on new orders gained only one index point.
The supplier delivery index increased from 46 in June 2010 to 47 in
July 2010. Some de-stocking took place in July in the aftermath
of exceptional demand in tourism-related sectors during the
2010 FIFA World Cup.
The index on selling prices declined from 52 to 49 in July and the
input price index declined marginally by one point to 58 in July,
suggesting that inflationary pressures were easing further.
Sacci's Trade Expectations Index (TEI) rose three points from 61 to
64 in July, indicating expectations for trade conditions were still
high and substantially better than a year ago, when the TEI stood
Expectations on sales and new orders increased, while supplier deliveries
and inventories were expected to improve over the next six
Respondents did not expect increases in price pressures in the medium
term, Sacci added.
Employment conditions in the trade environment deteriorated further
as the employment sub-index moved deeper into negative territory
in July 2010 - losing another index point.
The employment prospects index remained in positive territory and increased to 51 in July from 50 in June.