Retail sales rise as repo rate edges up

SOUTH Africa’s retail sales rose 2.4% year on year in May, above expectations, compared with a revised 2.1% expansion in April, Stats SA data showed. On a month-on-month basis, sales were up 0.8%.

SENTIMENT among businesses on trading conditions improved slightly last month with the SA Chamber of Commerce and Industry’s trade activity index rising two points to a level of 52.

SOUTH Africa might reconsider a new oil and gas law to ensure that investors can make profits while securing a place for the state in the sector, said Mineral Resources Minister Ngoako Ramatlhodi.

A three-week strike by the metalworkers union Numsa would not delay the first output from power utility Eskom’s new Medupi plant in December, said Public Enterprises Minister Lynne Brown.

MINING company Royal Bafokeng Platinum said it had concluded a fiveyear wage agreement with the National Union of Mineworkers to be implemented in two stages. The increases range from 7% to 10.5%.

THE South African Reserve Bank hiked the repo rate 25 basis points to 5.75%. Governor Gill Marcus warned of increased inflation pressure from high wage settlements‚ and cut the bank’s economic growth outlook.

ANGLO American Platinum gave the first insight into the devastation wrought on platinum companies’ profits by the record five-month strike‚ warning that interim headline earnings could fall up to 96%.

WHOLESALE trade sales decreased 0.9% year on year in May compared with a 0.7% drop year on year in April‚ Stats SA data showed. Seasonally adjusted sales decreased 0.6% compared with the month before.

WOOLWORTHS said its sales rose 12.7% in the 52 weeks to June 29, below analysts’ forecasts of a 13.5% rise. Sales rose 23.2% in the previous financial year, which lasted 53 weeks.

TELKOM SA said it had agreed to suspend planned restructuring and job cuts pending talks with unions, delaying changes that analysts say are needed to revive the struggling landline operator.