Pretoria - Retail trade sales grew by 7.4% year-on-year in October, Statistics South Africa (Stats SA) said on Wednesday.
The 7.4% year on-year growth came as Bloomberg consensus estimates had pencilled in an easing to 7.5% year-on-year in October.
October's number follows a revised 7.7% increase in September. Stats SA recorded the highest annual growth rate for retailers in hardware, paint and glass (16.6%), followed by retailers in household furniture, appliances and equipment (13.2%) and retailers in textiles, clothing, footwear and leather goods.
In the three months ending October, real retail sales increased by 7.6% year-on-year.
"Although at relatively comfortable levels consumer confidence has not improved significantly over the last three quarters pointing to some hesitancy on the part of consumers particularly with regard to their outlook on their own finances," noted Standard Bank economists.
The sale of big ticket items are likely to be impacted by the hesitancy towards the end of the year.
Nedbank economists said sales will remain firm in the last months of the year boosted by spending in the festive season.
"However, the benefit will partly be contained as consumers remain cautious on the back of the fragile state of the economy as well as rising cost pressures and high debt," said the bank, adding that demand for credit remains subdued.
"As a result, together with subdued overall growth picture, we maintain the view of unchanged interest rates until the third quarter of 2012."
At its last meeting for the year, the Reserve Bank's Monetary Policy Committee kept the repo rate unchanged at 5.5%.
