Guiding consumers since 2009

Consumers won't splash the cash, yet

By Staff Writer

While retail sales might have increased in February for the first time in more than a year, experts don't expect South Africans to start splashing the cash just yet.

It's expected that retail sales might have risen by 0.6% when compared to February last year after they took a dive by 1.7% in January according to a consensus forecast from both Reuters and Bloomberg.

"I think that retail sales should get stronger this year in line with other consumption indicators like vehicle sales, which are starting to run hard ahead of the Soccer World Cup," said Brait economist Colen Garrow.

"But the sustainability of the trend remains tenuous, as the economy is still undermined by the significant job losses last year. That will in turn hinder a more robust recovery in household consumption spending this year," he said.

The surprise interest rate cut by the Reserve Bank could motive consumers to spend more and with the World Cup around the corner, people will be spending on memorabilia, replica soccer shirts and other items to commemorate the event.

However, many households are still faced with heavy debt burdens following 2009's recession and job losses, these are all aspects which will constrain the sector.

Households who are still struggling with debt need to set up a budget and curb any excessive spending in order to get back on track and avoid further headaches.


"These factors first will have to improve before solid increases in retail sales can be expected," Standard Bank said last week.

Recent Articles

Featured New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria