News

Bump in 2012 ATM withdrawals signals renewed SA consumer confidence

July 10, 2012

Statistics released by South African IAD Spark ATM Systems reveal year-over-year growth of 6.77 percent in cash withdrawal activity for June — the largest year-over-year increase so far in 2012 — suggesting improved consumer spending and retail trading conditions nationally.  

The data also show a month-over-month increase of 2.76 percent in June 2012 to R437.71 ($53.39) per transaction. The Spark Cash Index (SCI) measures the average value of cash withdrawals across more than 1,500 Spark ATMs throughout South Africa.

"These increases are in line with the start of the mid-year school holiday season that kicked off towards the end of June when parents typically take their children away for holidays trips," said Marc Sternberg, MD of Spark ATM Systems. "This is traditionally followed by increased spending on food, petrol and other holiday activities."

According to Ronel Oberholzer, principal economist of sub-Saharan economics at IHS Global Insight, "The increased cash withdrawals at petrol stations in June 2012 already suggests a positive start to the mid-year holiday season where people frequent these outlets more for fuel. Convenien[ce] stores at these outlets also often record increased sales during the holiday season due to increased foot traffic and 'after-hour shopping' services." 

Because the SCI has proven a reliable leading indicator for Stats SA Retail Trade Sales (RTS) figures, it is likely that June RTS figures will also show a strong uptick in month-on-month and year-on-year values, Sternberg said. "Retailers should use the current school holiday season to their advantage with sales or other in-store specials to increase consumer spending."

For more on this topic, visit the trends/statistics research center.