South Africa’s Purchasing Managers Index (PMI) fell to a four-and-a-half year low of 46,4 in February, knocked by slowing demand and a crippling power shortage. The fall in the index, a measure of manufacturing activity, from 52,1 in January reflected lower new sales orders and marked the first decline below the 50 mark, which separates expansion from contraction, since 2003.
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/ 26 February 2008
South Africa’s economic growth jumped unexpectedly in the fourth quarter of 2007, keeping expansion for the year near a two-decade record at 5,1% as buoyant corporates outweighed slower consumer spending. Africa’s biggest economy has remained resilient despite higher interest rates, although growth is likely to slow in 2008.
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/ 7 February 2008
The rand is back to being one of the world’s worst-performing currencies in 2008 after a brief respite last year, and there appears nothing, for now, to halt its slide. A chronic energy crisis that is likely to slice into economic growth, political uncertainty and a gaping current-account deficit paint a gloomy picture for a currency prone to volatility.
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/ 19 December 2007
South African consumer inflation raced further away from the central bank’s band in November, backing the case for another interest rate rise, despite a slowdown in retail sales. The targeted CPIX gauge — which strips out mortgage costs — jumped to 7,9% year-on-year from 7,3% in October.
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/ 5 December 2007
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South Africa’s economic boom looks set to persist but concerns linger over the direction of policy after the crucial African National Congress (ANC) conference, which seems likely to choose Jacob Zuma as the ruling party’s new leader. Economic growth jumped to 5,4% in 2006 — its fastest rate since 1981 — and wealth is spreading to a burgeoning black middle class.
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/ 29 October 2007
Growth in demand for credit from South Africa’s private sector slowed in September, but remained above forecasts, keeping up pressure for higher interest rates. Credit growth eased to 22,46% year-on-year from an upwardly revised 23,16% in August, while money supply growth also eased to 24,94%.
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/ 25 October 2007
South African public finances are sound and the financial system is healthy, while strong economic growth will continue, albeit as a slower pace, Moody’s Investor Service said on Thursday. But political and socio-economic risks may dampen investor sentiment and cloud prospects for a ratings upgrade.
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/ 20 September 2007
South Africa’s central bank will continue to focus on its mandate to bring inflation to within its 3% to 6% target range, and would act decisively against broader price pressures, Governor Tito Mboweni said on Thursday. Forecasts suggested the CPIX inflation measure may return to within the target range in the second half of 2008.
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/ 12 September 2007
Statistics South Africa has proposed changes to the basket it uses to measure consumer inflation to reflect new technology and social trends, it said on Wednesday. The new basket would cut the number of products in the consumer price index to 386 from 1 124. If accepted, it would come into effect from 2009.
Underlying inflation pressures in South Africa’s economy, even after stripping out higher food and fuel costs, are strongly on the upside, central bank Governor Tito Mboweni said on Thursday. He also warned that if proposals for a sharp increase in electricity tariffs are approved, inflation could be pushed even higher.