Retail trade sales for December 2008 decreased by 0,1% compared with December 2007, Statistics South Africa said on Wednesday.
This was from a revised 4,4% contraction in November, the Pretoria-based agency said.
This was the eighth month in a row that retail sales have declined.
According to Statistics SA, retail sales for the fourth quarter of 2008 reflected a decrease of 2,1% compared with the fourth quarter of 2007.
Retail sales for the year 2008 dropped by 2,2% compared with 2007, the agency said.
This was the first annual decrease in nine years.
The year-on-year figure, however, was not as bad as had been anticipated, Nedbank economist Dennis Dykes said.
”Based on anecdotal evidence, it seems that people stayed home in December and their entertainment was shopping rather than travelling — so we may have had a temporary boost.”
The retail sales sector had been in recession since early last year, Dykes said.
”What normally happens is you have rate cuts and it takes six to 12 months before you see any response coming through.”
According to Dykes, the retail sales sector would only see a meaningful recovery in the second half of the year. — Sapa