e-spaces

The new National Credit Act hit furniture sales hard in June, dragging overall retail sales growth down, but analysts remained confident that consumer consumption would remain relatively high.

August 16, 2007 The new National Credit Act hit furniture sales hard in June, dragging overall retail sales growth down, but analysts remained confident that consumer consumption would remain relatively high. Statistics SA said yesterday that sales of furniture and appliances at current prices fell 13.5 percent from a year earlier in June. Cadiz African Harvest portfolio manager Mark Ansley said that while the credit act had no doubt reduced furniture sales, the longer-term picture would only emerge once last month’s data were out. Furniture retailers JD Group and Ellerine said they had initial problems in implementing the new lending regime, which led to declining sales. Overall retail sales at constant prices rose 6.4 percent year on year, down from May’s 9.2 percent growth. – Tom Robbins