Pretoria - October's retail trade sales rose by 6.1 percent year-on-year from September's 6 percent, Statistics South Africa said on Wednesday.
Nedbank economists said today's rise, which came out slightly above the consensus of 6 percent, was further evidence that consumption continues to recover.
According to Stats SA, the highest annual real growth rate was recorded for retailers in pharmaceutical and medical goods, cosmetics and toiletries. This was followed by retailers in household furniture, appliances and equipment, textiles, clothing, footwear and leather goods.
"Retail sales are likely to remain strong in November and December, reflecting a low base effect in 2009, better consumer confidence and a boost from festive spending. However, sales are likely to experience softer growth during 2011 as base effects diminish," said Nedbank.
The bank said recent economic releases suggest that the overall economic recovery remains fragile, with production still taking strain.
"We expect the Reserve Bank's Monetary Policy Committee to keep interest rates steady throughout next year before starting to hike towards the middle of 2012," it said.
