Retail-sales data for December released earlier on Wednesday by Statistics South Africa (Stats SA) show that growth in sales over the Christmas spending season was “phenomenal”, and the spending spree is likely to continue, according to Standard Bank.
Commenting on the latest sales data, which showed growth of 8,9% year-on-year in December, and 33% month-on-month, Standard Bank analyst Rashika Lala wrote in the bank’s Taking Stock report that South Africa’s retail sector recorded robust growth of 6,8% in 2005. This was considered to be a good annual
growth rate, despite the gradual decline seen on a monthly basis during the year.
“…. With no deterioration expected in the favourable financial environment, and improvements in disposable income, the spending spree is likely to continue,” forecast Lala. “Buoyant performance is also expected in 2006, as interest rates remain steady (or perhaps decline) and consumers make the most
of their income-tax relief. Still, high levels of household debt may cause consumers to spend more conservatively in the year ahead,” Lala concluded. — I-Net Bridge