Independent ATM provider Spark ATM Systems has reported healthy growth in consumer spending in its monthly Spark Cash Index, which was released on Thursday.
Average cash withdrawal values across South Africa, as measured by the Spark Cash Index, showed a slight increase from May to June of this year, following the big April holiday spike and subsequent expected sharp decrease in May.
The average cash withdrawal for June this year was R410, 0.9% up on May’s value of R406. This slim increase is consistent with prior years and is a good indication of continuing consumer confidence.
As expected, withdrawal values measured on a year-on-year basis are down by 0.67%.
Marc Sternberg, managing director of Spark ATM Systems, said: “Bearing in mind the inflated June 2010 value, which was caused by the Fifa soccer World Cup festivities, the June Spark Cash Index values are slightly down on last year’s value. This, however, was expected and is a result of a strong prior-year performance, rather than current weakness.”
A comparison of the index’s average cash withdrawal values against Stats SA’s retail sales figures correlates closely. Thus, this data may provide some insight as to the retail sales figures’ direction.
Sternberg said: “The spike seen in both the Spark Cash Index and the retail sales figures in April reflects the extended Easter, Freedom Day and Workers Day spending that we experienced this year. When the May and June retail sales figures are released, we expect to see a sharp drop in May and the figures to even out in June, as are reflected in the Spark Cash Index results to date.”
The amount of cash withdrawn at ATMs is a real-time indicator of cash availability and consumer spending in the economy. — I-Net Bridge