Confidence steady as S&P issues warning

BUSINESS confidence held steady in December, with export and import volumes and the value of building plans improving, a survey showed. The SA Chamber of Commerce and Industry’s business confidence index stood at 93.8 from 93.9 in November.

INDUSTRY group Grain SA sees a 2017 maize surplus after last year’s droughtinduced deficit, and its surveys showed farmers had planted 2.4 million hectares this season, an 18% increase over 2016, said CEO Jannie de Villiers.

LUXURY goods group Richemont said strong demand for jewellery and improved watch sales in its own stores helped sales swing to 5% growth in the quarter to December, a sign the luxury watch industry may see a recovery this year.

MANUFACTURING output rose 1.9% year on year in November, beating market expectations, after contracting by 2.7% in October, Stats SA said. On a month-on-month basis, factory production rose 0.3%.

S&P Global Ratings once again warned South Africa that its sovereign credit rating hung in the balance if it entered recession, or wealth levels declined in dollar terms. It has the country rated on its lowest rung of investment grade status at BBB-.

FACTORY output contracted further in December, the Barclays-sponsored poll of purchasing managers showed. The PMI fell to 46.7 from 48.3 points in November, the survey by the Bureau for Economic Research found.

NEW vehicle sales fell 15.3% year on year to 41 639 units in December, data from the Trade and Industry Department showed, although exports were up 7% to 18 668 units compared with the same month a year earlier.

DISCOVERY Health Medical Scheme and the Road Accident Fund are paying dearly for South Africa’s high road death toll, which rose 5% over the 2016-17 festive season compared with a year ago. More than 1 700 people died during the period.