JOHANNESBURG - Retail trade sales in South Africa rose by 2.4 percent in real terms in May, according to Statistics South Africa (Stats SA).
The biggest contributors to the increase were retailers specialising in textiles, clothing, footwear and leather goods, general dealers, and pharmacies and cosmetic stores.
The figures suggest South Africans continue to spend despite squeezed household budgets and rising living costs.
Standard Bank economist Shireen Darmalingam says higher fuel and transport costs linked to the conflict involving Iran are expected to erode disposable incomes, limiting the scope for a stronger recovery in consumer spending.
"The resurgence in fuel prices presents a growing risk to the consumer outlook as persistently higher transport and energy costs could gradually weaken purchasing power and slow spending momentum in the months ahead," she said.
On a monthly basis, retail sales edged up, suggesting consumer spending remains resilient despite a challenging economic environment.
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For the three months to May, retail sales increased by 2%, pointing to steady momentum in the sector.
The latest figures indicate that while consumers remain cautious, spending continues to hold up across key retail categories, providing a positive signal for retailers.
Darmalingam warned that renewed tensions involving Iran have heightened these risks by pushing global oil prices higher, increasing the upside risks to inflation and interest rates.