The ailing electronic national traffic information system (eNaTIS) had a negative effect on car sales and the Gauteng economy, a business breakfast heard on Tuesday.
Discussing the Gauteng Business Barometer (GBB) for April at the breakfast hosted by Gauteng Business for the construction industry, T-Sec economist Mike Schussler said April had been a particularly weak barometer.
”April was probably the weakest barometer we have seen since we launched in June last year,” he said. ”The main reason for this is the negative impact of higher interest rates and inflation. Implementation of eNaTIS also has an impact. The effect is more severe than we thought would be the case, four or five months ago.”
He said car sales were down by 6,3% in Gauteng compared with a year ago.
”It’s difficult to quantify the effect … people have been struggling to put cars trough system due to the delays eNaTIS has caused.”
The GBB for April slipped to 146,4 index points from 150,4 in March, indicating a 2,7% drop in business activity levels and a 5,9% decrease when compared with the same month last year.
Results for the construction industry were more positive, according to Standard Bank chief economist Goolam Ballim. He said the construction and peripheral industries could experience economic growth ”never seen before in South Africa”.
”Approximately R1,2-trillion will flow through these sectors and their extended supply chains, a sharp contrast to the R700-million that was spent during the past three years.”
The GBB measures Gauteng’s economic activity on a monthly basis. — Sapa