South Africa's retail sales up 2.3pc year on year in February
- Retail sales rose 2.3% year on year in February following a revised 3.7% contraction in January. On a monthly basis sales were up 6.9%, but were down 0.9% and in the three months since December.
- The food and beverages category showed the biggest turnaround, expanding 8% after contracting a 32.3% contraction in January.
JOHANNESBURG: South Africa's retail sales rose for the first time in eleven months in February, data showed on Wednesday, defying forecasts of another downturn as purchases of furniture, household appliances and food jumped.
Retail sales rose 2.3% year on year in February following a revised 3.7% contraction in January. On a monthly basis sales were up 6.9%, but were down 0.9% and in the three months since December.
It was the first annual increase in retail sales since March 2020, Statistics SA said. A Reuters poll had forecast a 1.8% contraction.
The food and beverages category showed the biggest turnaround, expanding 8% after contracting a 32.3% contraction in January.
Sales in the household furniture, appliances and equipment category rose 17.3%. Clothing sales increased 12.3%. Only general retailers and medicine and cosmetics sales fell.
South Africa, the country hardest-hit by the coronavirus in Africa with more than 1.5 million cases, saw its economy shrink 7% in 2020 as the strict lockdown, a severe shock to demand, and higher unemployment strangled activity.
Activity, however, picked up toward the end of 2020 as lockdown restrictions were eased to the lowest level. That was reflected in better-than-expected tax revenue for the financial year ended in March, although some analysts have warned this may be one-off.
Consumer inflation has been benign, but wages, along with consumer and business confidence, are set to remain under pressure, especially with the treasury's plan to freeze the salaries of thousands of public sector workers.
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