JOAHNNESBURG – Trade conditions in South Africa will decline over the next six months as expectations remained tight in January due to external conditions, the SA Chamber of Commerce and Industry (Sacci) said on Thursday.
“Trade conditions remained tight in January 2020 with 57 percent of the respondents experiencing negative conditions while 54 percent of the respondents expect conditions to remain depressed in the next six months,” Sacci said.
“External conditions that continued to affect the trade environment included lack of general business confidence; decreased real disposable household income; cost of living that exceeds general inflation; job losses; weakening rand, and real increase in administered prices.”
Business confidence is currently at a 20-year low and the economy is now forecast to grow at 0.5 percent or less for 2019.
Household expenditure is expected to remain depressed over the medium- to long-term as retail sales for December, the festive season, were lower than expected as consumers were under pressure.