April retail sales shock economists, as VAT hike bites harder than expected

Retail sales growth slowed to 0.5% in April, Statistics SA said on Wednesday.

This is down from 4.6% in March, the month before democratic South Africa’s first ever VAT hike.

The April figure was dramatically weaker than economists expected.

Consumer spending accounts for more than 60% of GDP.

Furniture stores thoroughly bucked the trend, growing sales by 11%.

The Money Show’s Bruce Whitfield interviewed 36ONE Asset Management Portfolio Manager Evan Walker.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

It [VAT increase] doesn’t go away… the petrol price hike was significant… the trend is worsening…

Evan Walker, 36ONE Asset Management

This might stem a rate hike…

Evan Walker, 36ONE Asset Management

We’re not seeing any job creation in the next couple of months…

Evan Walker, 36ONE Asset Management

We’re not going to get close [to 2% economic growth]… I have a very negative outlook for retail sales… We haven’t got more money to spend.

Evan Walker, 36ONE Asset Management

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : April retail sales shock economists, as VAT hike bites harder than expected


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
5 highlights from Pravin Gordhan’s state-owned company clean-up

5 highlights from Pravin Gordhan’s state-owned company clean-up

The Money Show’s Bruce Whitfield interviews Corruption Watch Executive Director David Lewis.

[Breaking] Transnet CEO Siyabonga Gama served with suspension notice

[Breaking] Transnet CEO Siyabonga Gama served with suspension notice

The Money Show’s Bruce Whitfield interviews Pieter du Toit, the assistant editor at News24.

We need to deracialise our thinking - Sandile Zungu (Black Business Council)

We need to deracialise our thinking - Sandile Zungu (Black Business Council)

The Money Show’s Bruce Whitfield interviews newly elected Black Business Council president Sandile Zungu.

To buy or not to buy? That is the question

To buy or not to buy? That is the question

The pros and cons of subscribing to versus buying digital content.

Rand nosedives as South Africa flirts with recession

Rand nosedives as South Africa flirts with recession

The Money Show’s Bruce Whitfield interviews George Glynos, Head of Research at ETM Analytics.

'New law threatens to wipe out vaping in South Africa'

'New law threatens to wipe out vaping in South Africa'

The Money Show’s Bruce Whitfield interviews Zodwa Velleman, CEO at the Vapour Product Association of South Africa.

Popular articles
'He told me people would want to keep him quiet at any cost'

'He told me people would want to keep him quiet at any cost'

Journalist Gavin Evans says the late Mark Minnie spoke to him about his fears that those he exposed in his book might harm him.

Zille won't stop fighting to have SANDF property released for affordable housing

Zille won't stop fighting to have SANDF property released for affordable housing

Zille says properties under the control of the state should be made available for local government's affordable housing plans.

'There is no verse in the Quran that says women should cover their faces'

'There is no verse in the Quran that says women should cover their faces'

Dr Taj Hargey says he is advocating for the ban of women wearing burkas in public because they look ridiculous.

[LISTEN] IRR believes list of targeted farms is genuine

[LISTEN] IRR believes list of targeted farms is genuine

Institute for Race Relations researches Terence Corrigan explains why they believe the list Afriforum has released is genuine.