Fri. Aug 23rd, 2019

Stats SA: Retail trade sales for May 2019 shows overall growth in spending

Retail sales are an essential metric of economic growth in South Africa and could have a material impact on the interest rate decision, according to Stats SA.

stats sa retail trade sales for may 2019 shows overall growth in spending 1024x667 - Stats SA: Retail trade sales for May 2019 shows overall growth in spending

Stats SA released the retail sales data for May 2019, with the markets hopeful of a rate cut by the reserve bank during their statement tomorrow.

Retail sales are an essential metric of economic growth or lack thereof in the country and could have a material impact on the interest rate decision.

The Reserve bank is anticipated to cut interest rates to help stimulate growth with inflation currently comfortably within the 3 to 6% inflation target and the economy currently in dire need of a boost.

Stats SA explains that the data presented are based on information obtained from a sample and are subject to sampling variability.

It may differ from the figures that would have been produced if the data had been collected from SA enterprises.

“Every effort is made to minimise non-sampling errors by careful design of questionnaires, testing them in pilot studies, editing reported data and implementing efficient operating procedures.”

Stats SA Retail trade sales, May

The May retail data shows overall growth in retail spending. May’s retail sales increased by 2.2% year-on-year for May 2019 as compared to the same period last year.

6ae155dd stats sa retail trade sales year on year percentage change - Stats SA: Retail trade sales for May 2019 shows overall growth in spending
Graph via Stats SA.

May 2019’s seasonally adjusted sales data was 0.1% higher than April 2019, showing a decrease in month-to-month growth following April’s 1% increase over March’s sales figures.

Contributing to the strong year-on-year growth in Retail sales were General Dealers, Retailers in household furniture and appliances, retailers in pharmaceutical goods, cosmetics and toiletries and retailers in food, beverage and tobacco in specialized stores. These showed the most substantial annual growth rates.

Retail trade sales for latest three months

General dealers showed the most considerable annual growth rate of 4% followed by retailers in household furniture and appliances with 3.2%, retailers in pharmaceuticals, medical goods, cosmetics and toiletries with 2.9% and retailers in food, beverages, and tobacco in specialized stores with 2.7% annual growth rate.

06ccd52c stats sa retail trade sales three months - Stats SA: Retail trade sales for May 2019 shows overall growth in spending
Graph via Stats SA.

The three-month sales figures for the period from March 2019 to May 2019 showed a 1.7% increase on sales for the same period in 2018.

The strong performance by general dealers, which typically generates the highest sales income predictably had the most significant influence on the positive retail sales figures. General dealer retail sales increased by 2.6% and contributing 1.1 percentage points to the sales growth for the period.

cda9f8df stats sa retail trade sales fig 1 - Stats SA: Retail trade sales for May 2019 shows overall growth in spending
Graph via Stats SA.

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