The average cash withdrawal values across South Africa as measured by the Spark Cash Index (SCI), an independent ATM provider, showed a slight increase from May to June 2011.
The average cash withdrawal for June this year was R410, 0.90% up on May’s value of R406. This slight increase is consistent with prior years and is a good indication of continuing consumer confidence. The withdrawal values measured on a year-on-year basis are down by 0.67%.
“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”, says Marc Sternberg, Spark ATM Systems MD.
A new feature of the SCI that was launched last month is the comparison of the SCI’s average cash withdrawal values against Stats SA’s Retail Sales Figures. The correlation is extremely close and as the SCI is released some two months ahead of the Stats SA report, the SCI therefore provides useful forecasting information as to the future direction of the Retail Sales Figures.
“The spike seen in both the SCI and the Retail Sales Figures in April reflects the extended Easter, Freedom Day and Workers Day spending that we experienced this year. When the May and June retail sales figures are released, we expect to see a sharp drop in May and the figures to even out in June as are reflected in the SCI results to date,” says Sternberg.
2010’s inflated SCI figures for June and July were an anomaly caused by the FIFA Soccer World Cup festivities. Taking this into consideration, and if one looks at the trends in the SCI in previous years, which reflect the July school holiday mini-spike, we expect July 2011’s average cash withdrawal figures to be slightly up when compared to June 2011.
The Spark Cash Index is a useful ‘real-time’ gauge of consumer spending, utilising Spark ATM Systems’ network of over 1,400 ATM points countrywide to reflect accurate, broad and timely cash utilisation data. Spark’s ATMs are typically located in convenience stores, petroleum stations, specialist retail nodes and leisure & hospitality venues.
Issued by Spark Cash Index
