Retail sales decline in September

[rpm]

Retail sales declined in September, Statistics SA said on Wednesday.

A decrease of 5,1 percent was reflected for September 2009 when compared with September 2008, the Pretoria-based agency said.

In August, retail sales declined by a revised 6.5 percent year-on-year, Statistics SA noted.

September's figure came as a shock as most economists had predicted a 4.4 percent year-on-year decline.

"The figure so clearly illustrates how very weak consumer demand remains," Nedbank economist Carmen Altenkirch said.

"We anticipate a fairly weak Christmas season with very little demand for durable goods," she said.

Only towards next year would the impact of lower interest rates have some effect, she said.

"Job losses are worrying. We could be looking at a million jobs lost this year and that leads to uncertainty and a reluctance to spend," Altenkirch said.

She said hopefully retail sales would see a return to positive growth by the middle of 2010.

 

[Nod]

"Job losses are worrying. We could be looking at a million jobs lost this year and that leads to uncertainty and a reluctance to spend," Altenkirch said.

So even if JZ could make his 500k new jobs, he would still be 500k short, or should that target move to 1.5mil jobs?

 

[Kosmik]

So even if JZ could make his 500k new jobs, he would still be 500k short, or should that target move to 1.5mil jobs?

Still waiting for those 500k jobs to magically appear. Also what about the job loss with the completion of the construction of the stadiums?

 

[sox63]

In the light of all this market information regarding lack of consumer spending, surely the relevance of the NCA should be looked at again?

Borrowing money is MUCH cheaper yes, but if the bank wont give you any, what are you going to spend?

 

[BBSA]

In the light of all this market information regarding lack of consumer spending, surely the relevance of the NCA should be looked at again?

Borrowing money is MUCH cheaper yes, but if the bank wont give you any, what are you going to spend?

It is not really the NCA, it is more the bank which do not have enough liquidity or are over cautious

 

[sox63]

It is not really the NCA, it is more the bank which do not have enough liquidity or are over cautious

I dont think liquidity is a factor, "our" banks have come through with profits pretty much the same. They are being over cautious though, but IMO, thats becuase the NCA holds the lenders responsible for reckless lending if a consumer does not keep up with payments.

 

[Kosmik]

I think the NCA is a good thing. People should realise that overspending is bad. I think the main reason people are cutting back is a) the times and b) having to cope with either paying off debt or not haveing as much access to it.

 

[Smooth Criminal]

I think the NCA is a good thing. People should realise that overspending is bad. I think the main reason people are cutting back is a) the times and b) having to cope with either paying off debt or not haveing as much access to it.

In principle it seems solid, but in practice it's been implemented poorly. There are people who can't afford toilet paper, but have home loans approved. Yet one of my buddies (who earns rather well and is debt free) can't even get a credit card.

 

[Kosmik]

In principle it seems solid, but in practice it's been implemented poorly. There are people who can't afford toilet paper, but have home loans approved. Yet one of my buddies (who earns rather well and is debt free) can't even get a credit card.

I have no idea how that can exist except through misrepresentation. Also how do you struggle to get a credit card? I got to chase the banks with a ugly stick!

 

[sox63]

In principle it seems solid, but in practice it's been implemented poorly. There are people who can't afford toilet paper, but have home loans approved. Yet one of my buddies (who earns rather well and is debt free) can't even get a credit card.

I'm in the same boat, I cant get a new car becuase of some silly default, not judgement, and yet when they do affordability, I can comfortably afford the damn car.

Oh well 2 years is almost up.

 

[Blaze786]

These drops are to be expected with the economy the way it is, what did they expect a 5.6% rise in sales?