Fri Oct 28 04:30:12 SAST 2016
Order restored at Sun City Prison after fiery protest over inmates’ TVs

Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.

Still in the grip of recession but the worst is over - economist

By Kea' Modimoeng | Jul 16, 2009 | COMMENTS [ 0 ]

SOUTH Africans are spending less despite several interest rate cuts, according to retail trade figures for May.

Economist Chris Hart said the figures, released yesterday by Statistics SA, emphasised that the country was still in the grip of a recession.

Retail sales for May decreased by 4,2percent year-on-year, from a decrease, year-on-year, of 6,9percent in April.

Retail trade sales for the three months ended May 2009 reflected a decrease of 5,3percent in comparison with the same period last year, where there was only a decrease of 0,1percent.

Retail trade sales at current prices, however, for May increased by 6,8percent compared with May last year. Sales for the corresponding period in 2008 increased by 8,9percent.

"The stimulus of lower interest rates still needs to be realised but that can only come through later in the year," Hart said.

He said the most affected or "sensitive" sector was the furniture industry which is generally affected by interest rates.

Mike Schüssler of said the month-on-month performance showed "the first signs that the worst is behind us".

"The economy is starting to show a flattening out and that is good for economic growth."

Hart said that the figures were not as bad as they could have been.

Generally, analysts expect retail sales to improve gradually this year as a result of, among other factors, interest rate cuts in line with declining inflation and some tax relief.


Login OR Join up TO COMMENT