Retail patches up lax growth

Consumers are spending more than economists thought.

June's retail sales grew 2.9% from the same month last year, taking its growth for the second quarter to 2.2%, Statistics SA reported on Wednesday.

The consensus from a Trading Economics poll expected the June figure to be about 2.2%.

The monthly rise from May was 0.2% - against an expected contraction of 0.3%.

Trade was the worst-performing sector in the first quarter, contributing to a 0.7% contraction in GDP.

Second-quarter total retail sales came to R186-billion, adjusted for inflation.

Retail sales contributed about 6% of South Africa's quarterly GDP of R3-trillion.

The best-performing sector was specialised food and beverage stores.

This sector rang up 12.4% higher sales, but only contributed 7.5% of the June total of R61-billion at 2012 prices.

Furniture retailers enjoyed 8.3% annual growth and contributed 5.2% of the total.

Hardware stores suffered a 7.1% decline in sales, taking their contribution down to 7.2%.

What Stats SA calls general dealers - the major grocery chains - grew sales by 2.5% in June, contributing 44% of the total.

l Local manufacturers continue to invest in equipment, research and human capital, despite weakening production statistics, according to the Manufacturing Circle.

Investment growth slowed slightly, however, the industry group's investment index for the second quarter showed yesterday.

It dropped five points from the first quarter to 58.