News

Spark Cash Index indicates upswing in SA spending

May 18, 2012

Worries about a dampening effect April's public holidays might have on the South African economy seem to have been misplaced. The Spark Cash Index, a regular report produced by independent deployer Spark ATM Systems, suggests that consumer spending — especially at retailers and wholesalers — did just fine, thanks.

The index revealed a month-over-month bump of 4.03 percent during April to R435.47 ($52.36) per transaction, compared with month-over-month rise of 1.46 percent in March. Excluding the month of December, this represented the highest average withdrawal value in six years. Year-over-year, the index metered a 3.02 percent increase.

April withdrawals were primarily driven by public, school and religious holidays. As predicted following the January and February withdrawal slump, consumer spending has gathered momentum and returned to positive gains during March and April.

Dawie Klopper, an investment economist at PSG Konsult, agree that the increase in cash withdrawals was significantly affected by the April holidays. “It is clear from previous cash withdrawal statistics that the same pattern has occurred in previous years," Klopper said.

The Spark Cash Index (SCI) measures the average value of cash withdrawals across more than 1,500 Spark ATM Systems’ ATMs throughout the country. The data is derived from every region in South Africa and ranges from rural areas to city centers.

According to Spark, the cash index tracks very closely with the country's Retail Sales Report and provides an accurate early indicator of economic activity.

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