Encouraging retail sales reported in US and SA

Loading player...
US retail sales and industrial production data for September tell different stories. Retail sales were surprisingly good, probably because the US economy continues to add jobs. However, US industrial production declined, indicating that the manufacturing sector lacks the same buoyancy as the retail sector. The answer seems to be that US consumers are buying imported items, which feeds the Trump campaign slogan about raising import tariffs.
SA’s retail sales for August were stronger than generally expected, and over the past six months the retail sector is showing improvement, despite high interest rates and unemployment. Relief from load shedding may have encouraged more retail activity, as well as the lower inflation rate, especially cheaper fuel. The latest data does not reflect the cash injection from the two-pot system and the recent interest rate cut, which should give local retailers a good end-of-year season.
Click here to listen to the podcast.
21 Oct 2024 English South Africa Investing · Business News

Other recent episodes

US jobs data shows an economy under pressure

In this podcast, STANLIB’s Chief Economist, Kevin Lings, explores a wide range of data on the US labour market. The statistics show that, as a result of President Trump’s tariff policies, jobs are being lost and the economy is under pressure. In response, the US Federal Reserve is expected to…
8 Sep 8 min

Positive SA government revenue and expenditure data

In this podcast, STANLIB’s Chief Economist, Kevin Lings, talks about revenue and expenditure data for July, with revenue holding up well and expenditure slightly behind budget. He also discusses concerns that the US’s 30% tariff could hurt SA’s export performance. Click here to listen to the podcast. STANLIB Asset Management…
1 Sep 11 min

Corporate Conversations: The power of money market instruments

South Africa’s money market industry is well-developed and globally competitive, with active trading in instruments like floating rate notes linked to local benchmarks such as JIBAR. Although floating rate notes are common in markets such as the US and UK, South Africa’s market exhibits distinct structural features and investor preferences…
27 Aug 9 min

US signals change in emphasis on interest rate policy

In this podcast, STANLIB Chief Economist, Kevin Lings, talks about Federal Reserve Chair Jerome Powell’s recent address at the Jackson Hole Symposium, where he indicates a notable shift in the Fed’s policy emphasis from managing inflation risks to addressing emerging weaknesses in the US labour market. This could signal the…
25 Aug 13 min