LOCKDOWN REGULATIONS MUST BE ADJUSTED – SACCI

THE SOUTH African Chamber of Commerce and Industry (Sacci) has warned that a number of companies might lose their businesses if some adjustment to the lockdown regulations was not considered. Sacci yesterday said the coronavirus pandemic and recessionary economic conditions had negatively impacted the business climate, resulting in further uncertain trade conditions. The organisation said the nationwide five-week lockdown starting on March 26 and extended to

April 30 had caused a sudden disruption of already volatile trade conditions. Sacci said that respondents to its monthly trade survey had said the lockdown was creating unrecoverable costs and may incur further financial losses due to further compromised trade conditions. “Covid-19 had a worsening effect on an already depressed trade environment and caused serious disruptions for the supply and offset chains – notably the consequence for expectations. Respondents fear loss of business with a noticeable impact on job losses if some adjustment on lockdown regulations is not considered. The effects of Covid-19 are expected to remain with the trade environment for the whole of 2020. The seasonally adjusted Trade Activity Index (TAI) and the Trade Expectations Index (TEI) deepened well into negative terrain after the government imposed a nationwide lockdown to curb the spread of the Covid-19. TAI declined by 3 points to 37 points in March, while

TEI dropped by 4 index points to 41 points. Sales volumes and new orders received were hard hit, with a negative effect on new vehicle sales in March. Sales expectations and expected new orders for the next six months also took a blow as both these indices declined by 18 percent in the March trade survey. Expected supplier deliveries and inventories were set to deteriorate over the next six months and employment opportunities would remain tight.