Sacci reports Trade conditions moderately positive in March

Trade conditions were moderately positive as they moved deeper into positive territory in March, said the South African Chamber of Commerce and Industry (Sacci).

“Trade conditions moved deeper into positive territory in March 2013. The improvement of the Trade Activity Index (TAI) from 42 in December 2012 to 52 in January 2013 continued to 56 in March 2013,” said Sacci in its monthly Trade Conditions Survey on Thursday.

Trade conditions (TAI) were four points lower in March 2013 than in March 2012.

Sacci said the improvement in trade conditions between February and March 2013 showed that despite an overall depressed business mood, as reflected by the SACCI Business Confidence Index for March 2013, there remain pockets of optimism in the economy.

According to the report, the seasonally adjusted TAI also improved by 5 index points to 54 in March from 49 in February. Public holidays in March did not have a negative effect on trade conditions and may have even been supportive of improved trade.

In March, all sub-components of trade activity (TAI) increased with sales volumes registering the highest level since November last year.

Trade prospects (Trade Expectations Index) for the next six months was positive. “Trade prospects were stable over the last four months and remained above the 60 index mark.”

Current and expected input prices appear to have stabilised albeit at higher levels. "The lagged impact of the continued weakening of the rand in March 2013 may however continue to have consequences for input costs for the rest of 2013. The input price index was higher by two points than twelve months ago while the sales price index was three points lower than in March 2012.

The constrained employment conditions in the trade environment eased in March 2013 with the index moving to positive territory from 45 in February 2013 to 52. The index on short-term employment expectations remained in positive territory at 53, compared to 54 in February 2013, which was about the same level as twelve months ago.