News

SA ATM cash withdrawal values regain momentum and record four-year high

March 7, 2012

Spark ATM Systems, an independent ATM deployer in South Africa, has released February ATM use figures indicating that consumer spending and trading conditions in the country have stabilized, the company said in a news release. This rise followed a significant drop-off in withdrawal values from December 2011 to January 2012.

The Spark Cash Index measures the average value of cash withdrawals across more than 1,500 Spark ATMs in South Africa. February results showed a small month-on-month drop of 1.31 percent in February 2012, compared to a plunge of 8.81 percent in January 2012. However, year-over-year numbers grew 1.93 percent. An average cash withdrawal of R412 ($53.79) represented the highest recorded amount for February in four years.

According to Marc Sternberg, marketing director of Spark ATM Systems, the stabilization of average cash withdrawal values is in keeping with consumer cash withdrawal patterns recorded over the past four years. “Following the traditional post-festive season slump in January, consumer spending gradually starts to gather momentum again in February, returning to positive gains during the Easter holiday period,” Sternberg said.

According to Statistics SA, during 2011, retail sales rose 6.1 percent, compared to 5.1 percent in 2010. Current factors such as high nominal income levels and interest rates remaining steady at near-30 year lows are helping to sustain household consumption. However, Sternberg warns that factors such as rising inflation and challenging global conditions may eat into disposable income, curbing household consumption in the second half of 2012.

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