Trade balance worsens but Moody’s is upbeat

RATINGS agency Moody’s has offered a rare positive comment on the economy, saying South Africa is unlikely to fall into a recession this year or be downgraded in the next 12 to 18 months. It did‚ however‚ warn again of a slew of constraints on growth.

GROWTH in privatesector credit demand quickened to 8.38% year on year in July against a revised 8.05% in June. Growth in the broadly defined M3 measure of money supply accelerated to 10.25% from a revised 8.77% increase.

SOUTH Africa will carry out a nuclear agreement only if it is affordable and in line with procurement policies, Energy Minister Tina Joemat-Pettersson has told parliament. The country plans to generate 9 600MW of power this year.

SOUTH Africa is the most open and potentially lucrative country on the continent for UK companies looking to expand their businesses, according to the first edition of the Barclays Africa Trade Index.

NEW vehicle sales in South Africa fell by 8.2% year on year to 51 055 units in August, data from the National Association of Automobile Manufacturers of South Africa show. However, exports increased by 12.3% year on year to 28 069 units, it said.

THE Standard Bank purchasing managers’ index, produced by Markit, edged up to 49.3 in August from 48.9 in July, holding below the 50 mark that signals expansion for the third month in a row after a further decline in new business.

SOUTH Africa recorded a trade deficit of R400-million in July from a revised surplus of R5.5-billion in June, the South African Revenue Service says. Exports rose 4.7% to R94.2-billion, while imports were up 12% month on month at R94.6-billion. BUSINESS confidence fell to a 16-year-low in August‚ indicating the extent to which subdued economic growth and market volatility weighed on sentiment. The SA Chamber of Commerce and Industry’s index fell to 84.3 from 87.9 in July.