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Johannesburg - The unadjusted Trade Activity Index (TAI) increased by six index points to 62 in January, the SA Chamber of Commerce and Industry (Sacci) said on Wednesday.
"Trade conditions moved further ahead in January 2015 after performing better than anticipated since October 2014," it said in a statement.
The non-seasonally adjusted TAI was 11 points higher than in December and 13 points above January last year.
"Although trade appeared relatively buoyant in January, the probable excess domestic demand will find its way towards imports," Sacci said.
Import volumes were higher in the fourth quarter of last year than in the same quarter in 2013.
The current electricity constraints would however have a negative effect on trade but perhaps less so than on other sectors.
Sales volumes were substantially higher in January. This was due to seasonal lower inter-business trade during the December holidays.
Volumes were better than last year's low January figure.
The new orders sub-index improved by 10 index points in January compared to December.
"Supplier deliveries returned to normal as businesses reopened in January and was above the 50 level.
"Stock levels were replenished after the holiday period pushing the index up to 64 from the level of 60 in December 2014," Sacci said.
Prices of inputs and sales increased in January 2015 and the indices increased by six and five index points respectively.
Expectations for sales and input price increases were also higher as both increased in January. Sales prices increased by five index points to 76 and input prices by one index point to 77.
"The Trade Expectations Index (TEI) is sensitive to the possibility of future electricity shortages," Sacci said.
The TEI slowed by three index points and was lower than the TAI in January.
Employment conditions in the trade environment improved by 11 index points to 57 in January.
