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The South African Chamber of Commerce and Industry’s monthly Trade Activity Index remained muted for October, improving marginally from 39 in September to 40 points.
Last year in October the index was at 43 points.
The TAI is the composite index of sales volumes, new orders, supplier deliveries, inventory levels and employment.
In a media statement on Wednesday Sacci said this indicated “continued, strained activity”.
“The survey indicates rising sales and input prices, but notably with higher input-cost pressures, and a smaller possibility of increasing sales prices. It remains difficult to raise sales prices due to subdued demand in the economy,” said Sacci.
“Nonetheless, in October 2018, more respondents suggested increasing sales prices compared to September 2018, with the sales-price index increasing by 5 index points to 61, and the input-price index increasing by 2 index points to 82. Price expectations point to inflationary pressure remaining high as respondents expect higher input costs.”
The six-month Trade Expectations Index, meanwhile, a composite index of expectations on things like sales volumes and new orders, was up slightly to 46 points from 44 in September.
This index was 5 points below last October’s level of 51.
Various business and trade confidence indexes tracking SA's economy have been muted in the second half of 2018. SA officially slipped into a technical recession after the country's real gross domestic product decreased by 0.7% in the second quarter of the year, after falling 2.2% in the first quarter.
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