Trade conditions improve

By Nomava Nobumba
11 September 2009

South African Chamber of commerce and Industry says trade conditions in South Africa are set on a path of recovery.

According to the latest research that was conducted in August, Trade Activity Index has improved since July.

It said the steady recovery in the index from a low of 32 in April 2009 appears to be sustained.

Meanwhile, the new orders sub-index that had gained eight points in July, increased further by three points in August to reach 47, the best level this year.

Supplier deliveries also improved to 42 in August from the 39 recorded in July, confirming its path to recovery.

The increase in the inventory index to 45 from 40 in July 2009 is further evidence of improving trade conditions.

The index on supplier delivery prospects also stabilised on 54.

Prospects for trade activity were all positive except when coming to employment prospects.

The implication of these movements is that even when employment recovers, the recovery will not be a consistently smooth path but a path that is reflective of an difficult economic recovery.