Pretoria - Trade conditions in February rebounded to pre-festive season levels at 56 points, the South African Chamber of Commerce and Industry (SACCI) said on Friday.
"Comparable levels were last experienced in November 2010 when the TAI [Trade Activity Index] indicated 57. The February 2011 TAI is two points above the February 2010 level and 15 points above February 2009 level," SACCI said in its monthly Trade Conditions Survey.
"The path to improvement in trade conditions, which can be traced to September 2010, appears to have re-established its course following a two-month set back," it said.
The improved level of sales volumes index since September last year regained significant pace in February, measuring 62 after reaching 50 in January 2011.
The other components of trade activity all improved on the January levels and were now comparable to the strong levels of November 2010.
In February, the price indices for current sales and input prices increased further after rising substantially in January 2011.
The input price index rose by four points in February 2011 after a seven point increase in January 2011, while the sales price index rose by three points compared to five points the previous month.
Additionally, the Trade Expectations Index (TEI) continued to improve in February. The expectation indices on sales volumes and new orders maintained their January 2011 levels, while the backlog on orders improved. However, the indices on supplier deliveries and inventories were marginally down.
The price expectations indices also increased by five and three points for selling and input prices respectively.
"The outlook for inflationary pressures has deteriorated considerably since the end of 2010," said SACCI.
The index on employment conditions in the trade environment broadened to 51 from 47 in January 2011, entering positive territory for the first time since the pre-strike season in April 2010.
The employment prospects index registered 54, remaining in positive territory in February 2011 and gaining further on the six-month outlook in January 2011.
