South African trade conditions slump in April due to Covid-19 lockdown

JOHANNESBURG – Trading conditions in South Africa were badly affected during April by a lockdown aimed at limiting Covid-19 transmissions, with an index that tracks activity declining 11 points, a leading business chamber said on Thursday.

The South African Chamber of Commerce and Industry (SACCI) said its latest survey showed sales volumes and new orders plunged during the month, with 78 percent and 76 percent of the respondents respectively experiencing adverse conditions.

SACCI’s seasonally adjusted trade activity index declined by 11 points to 26 in April compared with March, while the seasonally adjusted trade expectations index dropped by 10 index points to 31 – well beyond recessionary conditions.

“The adverse effect on new vehicle sales in April is an example of the notable impact the lockdown had on ‘non-essential’ trade,” SACCI said.

New vehicle sales plunged 98.4 percent to 574 units in April compared with the same month last year, reflecting the impact of the lockdown imposed from March 27 which brought most business activity to a virtual standstill, the National Association of Automobile Manufacturers of South Africa said last week.