JOHANNESBURG – South Africa’s retail sales grew above expectations by 3.3% year-on-year in July after expanding by a revised 3.8% in June, the government’s statistics agency said on Wednesday.
On a month-on-month basis, sales were up 0.1%, and rose by 3% in the three months to July compared with the same period last year, Statistics South Africa said.
“General economic conditions remain lacklustre and the outlook is relatively weak. However, the MPC is expected to focus more on the upside risk to inflation emanating from the rand’s sharp slide in recent weeks and the threat of even further weakness in the months ahead given the combination of increased global risk aversion and the expected rise in US interest rates. We still believe that there is a strong danger of another 25 basis points hike at next week’s MPC meeting, but the probability has fallen in the wake of the turmoil in equity markets, which reduced the chances of a hike by the US Federal Reserve.”