Wholesale sales of construction materials declined 7.7 percent y-y in May to R14.1 billion, a slight improvement from April’s revised 9.8 percent drop — underscoring persistent weakness in the trade sector. Over the same period, total wholesale trade also fell, but by a somewhat smaller margin of 6.3 percent y-y, down to R286 billion, reflecting a broadly soft wholesale environment. By contrast, retail trade showed more resilience, albeit modestly. While construction‑related retail sales (nominal) edged up just 2.5 percent y‑y to R9.8 billion, overall retail sales performed strongly, rising 4.2 percent y‑y in May to R123 billion, outpacing total wholesale trade by a considerable margin. Consumer demand thus continued to support retail growth, even as wholesale channels struggled. The divergence between wholesale softness and retail strength highlights the consumer-driven nature of recovery in construction-related sectors. Added to this dynamic, the value of building approvals, particularly in the renovations and additions market—rebounded in May. This uptick followed a 25‑basis‑point interest rate cut, signaling a potentially solid pickup in activity outside the informal sector. Click here to download a comparison of the latest trade sales (available to subscribers)
