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SA ATM withdrawals weaken in July

August 8, 2013

ATM withdrawal activity in South Africa metered a decrease in July, pulling back from a holiday high in June. This according to the Spark Cash Index, which measures the average monthly value of cash withdrawals at more than 2,000 Spark ATMs in South Africa. 

The SCI revealed a month-on-month decrease of 2.79 percent in average cash withdrawal amounts. The average for July registered R462.70 ($46.86), compared with R475.98 ($48.20) in June. 

"The decrease in July's month-to-month data once again highlights how consumer spending normalizes after each holiday period, when withdrawal values tend to peak," said Ryan Tzamtzis, operations manager at Spark ATM Systems.

July figures were further influenced by a fuel price increase, which forced consumers to cut back, said Ronel Oberholzer, principal economist at IHS Global Insights.

"The 84 cents (9 cents) per litre jump in the petrol price in July is one of the highest ever and has made consumers more cautious when it comes to spending," he said.

Tzamtzis said that new fuel price increases in August will put an added strain on consumer spending habits, which is likely to be reflected in flat withdrawal values across all ATM locations.

Read more about trends and statistics.