June retail sales raises red flag about recessionary risk

Retail sales rose a tepid 0.7% year-on-year in June after increasing by 1.9% in May, raising red flags about a technical recession in the second quarter. On a month-on-month basis, sales fell 1.2%. Economists largely expected retail sales to increase by 2.2% meanwhile, Reserve Bank Governor, Lesetja Kganyago has highlighted that lower consumer demand is hindering the country's economic health. Isaah Mhlanga, Chief Economist at Alexander Forbes joined Business Day TV to discuss what the latest print suggests about the trajectory of the economy.