Consumer Watch – August 2018

August saw a continuation of the positive news flows witnessed in July as positive factors exceeded negative factors. Good news from the month of August came in the form of an improvement in Business Confidence (BCI) following a negative trend. Retail sales ended June 0.7% higher y/y. August saw an increase of 3.6 points in the PMI. Negative news came from increases in the price of petrol, CPI and PPI. Fuel price hikes of 29c/litre for petrol and 28c/litre for diesel are expected in September. The CPI and PPI figures reported in July showed respective increases of 50bps and 20bps in the indices.
The rand depreciated further versus the US Dollar during the month of August, with the depreciation standing at -9.7% y/y, closing weaker than the August monthly average.