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Local retail sales growth slowed to 4.9 percent year on year in July at constant prices, according to official data yesterday, weakening the argument for another interest rate hike next month.

September 21, 2007 Local retail sales growth slowed to 4.9 percent year on year in July at constant prices, according to official data yesterday, weakening the argument for another interest rate hike next month. Statistics SA said retail sales, the main measure of consumer demand, braked from an upwardly revised 7.1 percent in June and increased by 6.8 percent in the three months to July compared with the same period last year, also at constant prices. “The high interest rate strategy could be having an impact,” said ETM economist George Glynos. On Wednesday a survey by the Bureau for Economic Research showed confidence in the retail sector dipped in the third quarter of 2007 on the higher interest rates and a new credit law, although retailers remained largely upbeat. – Reuters