News

South Africa's 2011 cash withdrawal values show positive trend

July 6, 2011

Average cash withdrawal values across South Africa — as measured by the Spark Cash Index (SCI) — showed a slight increase from May to June of this year, following a big April holiday spike and subsequent expected sharp decrease in May.

The average cash withdrawal for June this year was R410, 0.90 percent up on May’s value of R406. This slight increase is consistent with prior years and is a good indication of continuing consumer confidence. As expected, withdrawal values measured on a year-on-year basis are down by 0.67 percent.

"Bearing in mind the inflated June 2010 value, which was caused by the FIFA Soccer World Cup festivities, the June 2011 SCI values are slightly down on last year’s value. This however was expected and is a result of a strong prior year performance rather than current weakness," said Marc Sternberg, of Spark ATM Systems.

Taking this anomaly into consideration, and in looking at the trends in the SCI in previous years, which reflect the July school holiday mini-spike, July 2011’s average cash withdrawal figures are expected to be slightly up on June’s.

The Spark Cash Index is a real-time gauge of consumer spending, using Spark ATM Systems’ network of more than 1,400 ATM points countrywide to reflect accurate, broad and timely cash utilization data. Spark’s ATMs are typically located in convenience stores, petroleum stations, specialty retail stores and leisure and hospitality venues.