Summary: Management consulting firm Frost & Sullivan, a senior economic analyst Mr. Craig Parker said in May this year, the Central Reserve Bank of South Africa conference decided to maintain interest rates unchanged, and South Africa over the past few months a strong currency and slow down inflationary pressures and other factors , resulting in a slight increase in consumer disposable income, but retail sales canal whether it can continue to grow cautious optimism.

According to South African media Business Day present (2016) on July 14 reported that in May this year the South African retail sales growth is better than expected, so following the economic contraction in the first quarter, the second quarter is expected to grow slightly. Statistics South Africa (Statistics SA) Department announced on Wednesday May statistics, retail sales annual growth rate of 4.5 percent, the largest increase since the Department in January 2014, the growth rate this year in April, compared with 1.6 %. Although the South African Bureau of Economic Research (Bureau of Economic Research) and FNB Bank are published in the second quarter of this year, the consumer confidence index fell sharply, household spending will be tight for fear, but retail sales unexpectedly rose.
Management consulting firm Frost & Sullivan, a senior economic analyst Mr. Craig Parker said in May this year, the Central Reserve Bank of South Africa conference decided to maintain interest rates unchanged, and South Africa over the past few months a strong currency and slow down inflationary pressures and other factors, resulting in consumption may slightly increase the disposable income, but retail sales canal whether it can continue to grow cautious optimism, after all, consumers are still faced with important high cost of living and rising unemployment and high debt burden of the household are worse factor.
Further business management consultant McKinsey has recently conducted survey research on 1,000 consumers in South Africa, almost 70% of the respondents were worried about the recent fear of unemployment, and more than half of the respondents also expressed constraints living expenses, you must tighten spending, delay or purchase more than parity.
Retail sales growth is mainly dependent on textile and apparel, general distributors and retailers of footwear and leather goods, because the industry generally sell cheaper goods in times of economic hardship, there is still the ability for consumers to buy.
Statistics South Africa (Statistics SA) data show that as of this year, before the end of 53 months, retail sales in the seasonally adjusted compared with the previous three-month growth of 0.5%. In addition to retail sales better than expected manufacturing data released statistics before 1 May Yijiao good expectations, resulting in more market experts believe that the second quarter of this year, the South African economy should have the opportunity to grow slightly.
In addition, in June this year the bank to measure turnover of less than five million South African currency interbank trading volume index BankservAfrica Economic Transaction index also rose slightly by 0.3%, compared with May showing a sharp drop in the case of an improvement, showing in June's economic vitality has been little recovery , but the increase is still to minimize the growth rate this year, reflecting the strength of economic growth remains fragile.
The index also reflects the extent of fluctuations in various sectors of the economy, such as manufacturing slight signs of improvement, but the decline in car sales show auto market is still quite suppressed. Market analysts pointed out that in the past two years of economic stagnation in South Africa, now appears no sign of economic growth in the near future will rise, the monthly fluctuations in the economic transactions is still very intense. In addition, the South African Federation of Commerce and Industry are published in June business activity index rose slightly to 51 points, 50 points better than that of May, reflecting the activities of the business sector is only slightly improved. Although the index 50 points, which represents business activity improved, but many respondents still concerned about the issue, including the lack of government departments and other relevant reports.