Business confidence ticks upwards, but manufacturing is lagging

BUSINESS confidence rose in July, after five months of declines, and could improve with policy certainty, the South African Chamber of Commerce and Industry said. The business confidence index rose one point from 93.7 in June to 94.7.

PROFIT at pan-African associate Ecobank helped Nedbank grow interim headline earnings 27% to R6.7bn. Nedbank raised its interim dividend by 14%. Ecobank swung to a profit of R134m during the six months to end-June, from a loss of R1.2bn in the matching period.

A further step was taken this week towards implementing the national minimum wage‚ with the adoption of the enabling legislation by the National Council of Provinces’ select committee on economic and business development. The bill provides for a national minimum wage of R20 an hour‚ with R18 stipulated for agricultural workers and R15 for domestic workers.

THE manufacturing sector’s meagre growth in June would not be enough to avoid dragging down secondquarter GDP. Manufacturing output rose 0.7% in June from the same month in 2017, Stats SA reported this week.

MTN warned that renewed US-led economic sanctions against Iran had once again tied up funds in its second-biggest market. The company repatriated almost $1bn from the country in 2017 after the lifting of a previous round of restrictions, and had embarked on a $750m plan to extend broadband connections to the country’s cities. That project is now on hold, and difficulties taking out cash have returned.

SA’s gross reserves, which include gold and foreign exchange, fell in July, partly as result of the drop in the gold price. The Reserve Bank’s holdings declined by $71m to $50.511bn as at July 31, compared with $50.582bn at end-June, data showed this week.