Consumers show signs of pressure as retail sales decline 1.3% – SABC News

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Consumers are showing signs of pressure as data points to a decrease in shopping in October. Figures released by Statistics South Africa show that retail sales fell 1.3% in October from a 5.1% increase in September 2021.

However, compared to the same period last year, retail sales increased 1.8%.

The main contributors to the annual increase were pharmaceutical and medical products, cosmetics and toiletries, and textiles and clothing.

A senior economist at Standard Bank, Elna Moolman, says the month-over-month decline can be attributed to the weak labor market and the lingering effects of the July unrest.

“So we assume it was because the companies had to close and we assume that it was largely temporary layoffs and there were job losses in the government sector,” which is probably more of a time issue in terms of the extension of the public works program. So we hope that this is temporary and that we will eventually see a gradual reversal and improvement there. But we care. We are all set to see a significant impact of the unrest directly immediately, but now we need to see what the longer term indirect impact is. “

Economic data | Consumers are showing signs of pressure: Elna Moolman


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