SA trade conditions under pressure, some businesses consider shutting
JOHANNESBURG – South African trade conditions remained under pressure in June, a survey showed on Wednesday, with some respondents considering closing down their businesses due to the difficult economic conditions.
The South African Chamber of Commerce and Industry's (SACCI) trade activity index dipped by three index points to 38 in June compared with the previous month, while the trade expectations index was unchanged from May's 48 points.
Among the reasons some companies gave for contemplating closing shop were poor municipal service delivery, a strain on discretionary household spending and increases in electricity, fuel, water and other costs, SACCI said.
"Other sectors (cited) difficulty in recruiting appropriately trained staff," the chamber added.
In the survey, the employment sub index contracted somewhat in June to 42 index points from 46 in May, but expected employment conditions in the sector improved as the index increased from 41 to 45.
African News Agency (ANA)