Confidence among South Africa's retailers rose to a 16-year peak in the second quarter of 2004, an independent survey showed on Thursday, adding to a raft of positive data on the continent's biggest economy.
Consumer demand has been one of the main drivers of economic growth in South Africa in the past year, with lending rates at 22-year lows after the central bank slashed its key repo rate by 5.5 percentage points to eight percent in 2003.
The retail confidence index compiled by the Bureau for Economic Research (BER) jumped to 80 points in the second quarter after slipping to 65 points in the first quarter from 68 points in the final three months of 2003.
A BER statement said this leap in confidence could be attributed to strong retail sales growth in the past few months, and suggested that the sector would sustain its strong performance this year.
"The BER's survey results suggest that the consumer spending spree continued during the second quarter of 2004," it said.
Official data shows that during the first quarter of the year, retail sales rose 6.4 percent compared with the same period in 2003. Figures for the second quarter will be released next Wednesday.
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