South Africa reports favorable trade prospects

Trade prospects in South Africa remained favorable for the next six months, the South African Chamber of Business and the banking group Absa said on Friday.

South African economists said that the economy was still expected to maintain growing by some four percent this year.

Last month, the trade expectations index (TEI), a measure of trade condition prospects, for the next six months rose marginally by one index point to 68, according to the Trade Activity Index ( TAI) which is compiled from the Sacob/Absa Trade Conditions Survey.

The TAI registered a reading of 54 in July compared to 56 in June, Sacob economist Richard Downing said.

Although exceptionally favorable trade conditions might still occur because of seasonal factors towards the end of the year, conditions in general are expected to moderate.

"The dip in the TAI can be ascribed to fewer number of respondents that reported an increase in sales, new orders and supplier deliveries," Downing said.

He said the positive expectations for the next six months have the holiday and festive season in sight and do not necessarily imply a continuation of the robust conditions of the past few months prior to this June.

Between May and July this year, the index for price expectations on sales increased by four index points and the index for expectations on input prices rose by no less than nine index points between May and July, he added.

Source: Xinhua