Johannesburg - The Trade Activity Index (TAI), which reflects current trade conditions, declined by nine index points to 47 in April, the SA Chamber of Commerce and Industry (Sacci) said on Thursday.
This was mainly due to four fewer working days in April than in March 2010, Sacci said in a statement.
"The TAI is nonetheless still 15 index points above the level of April 2009."
The Trade Expectations Index (TEI) remained nearly unmoved at 63 in April 2010, Sacci said.
All the sub-components of trade activity, with the exception of employment, were responsible for worsening trade conditions in
April 2010.
The sub-index on sales volumes dropped by 15 index points in April from 63 in March 2010 while the employment sub-index improved
by one index point to 52 in April 2010.
The new orders index dipped by 14 points to 43 in April 2010, while the supplier deliveries index declined by 10 points to 42 in April.
Sacci said the inventory index declined to 48 in April from 49 in March suggesting that stock was being maintained in anticipation of World Cup demand and the expected demand from the continuing economic recovery in the second half of 2010.
The index on selling prices declined to 54 in April from 56 in March 2010.
The input price index also declined marginally by two points to 62 in April 2010, Sacci said.
"These price movements indicate that inflationary pressures have eased somewhat, but sizeable direct and indirect cost impacts from
the implementation of high water and electricity tariffs will still add to inflationary pressures in months to come," it said.
Looking six months ahead, respondents remained optimistic although slightly less so than three months ago.
Sacci said the TEI stayed high at 63 in April from 64 in March 2010, but down from the 67 and 68 in January and February 2010
respectively.
The expectations index (six months hence) was now probing the period up to October 2010 and the positive outlook factored in a
stronger economic outlook for the second half of 2010.
Sacci said sales expectations remained unchanged between the April and March survey at 73 for the index.
Expectations for new orders were slightly down by three points to 65 in April 2010.
The index on prospects for supplier deliveries decreased from 64 in March to 61 in April 2010.
"The indices on expected selling and input prices for April 2010 suggest that inflationary expectations have eased in April 2010," Sacci said.
The input price expectations index and the sales price expectations index both declined by three index points to 66 and 64 respectively in April 2010.
Current employment conditions in the trade environment remained in positive territory in April 2010 despite trade conditions being
tighter.
According to Sacci, the employment index rose by a further one point to 52 in April 2010.
The employment prospects index remained at 54 in April 2010.
"The index remains well into positive territory and reflects greater employment opportunities in the trade sector over the medium term," Sacci said.
- Sapa