The seasonally adjusted composite Trade Activity Index declined by 1 index point to 47 in March.
The SA Chamber of Commerce and Industry says the seasonally adjusted TAI has declined by nine index points since December.
Sacci says the TAI of 47 in March is also three points below the level in March last year.
The national business chamber says the disruptions to the economy caused by continued strike action, most notably at the Medupi power station, threats thereof and radical political posturing, create a less optimal trading climate.
"With the sales volumes sub-index 4 index points higher in March 2015 at 55 and the better than anticipated January figures of 61, the 1st quarter 2015 sales remained in positive territory. New orders also improved in March 2015 but were slightly below the March 2014 level. Global as well domestic trade appears to be facing headwinds from underperforming global trade partners and real household and public sector spending under pressure. Debt levels remain a serious constraining factor. Even the supplier deliveries index that seldom dips below 50, registered only 42 in March," Sacci said in a statement Wednesday.
"The weaker trade conditions did not ease price rises as both the sales and input price indices rose to 62 and 70 respectively in March 2015. This is of concern given that even with the lower fuel price, businesses could not absorb other price pressures like labour and electricity disruption costs. Given the high import propensity of the South African economy, the overall weaker rand is impacting on higher import prices."
"Price expectations softened further with both the sales and input price expectations indices retracting in March to 63 and 69 after already declining to 67 and 69 respectively in February 2015. In following the TAI, the seasonally adjusted trade expectations index (TEI) also declined by 1 point to 52 from 51 in February 2015. Expectations for sales volumes declined by 3 index points to 58 in March 2015."
"Expected and current employment conditions weakened as the indices for both declined by 2 and 4 respectively to 50 and 46," the statement concluded.
