Transactional growth slower

The BankservAfrica Economic Transaction Index (BETI) is showing signs of a slight slowdown. There are, however, still reasons to remain optimistic of a shift in growth to higher levels in months to come.

“The February BETI – the broadest now indicator of real turnover in the South African economy – shows transactional growth fell to 3% in February from 3.5% in January,” says Shergeran Naidoo at BankservAfrica. “This comes after a very strong December and January.”

Growth between January and February, much like between December and January, was almost flat.

“The movement in these months suggest the BETI is again a little skittish with growth in the agricultural and mining sectors where this is not as strong as before. Consumer spend and retail sales have also slowed down after a very active November and December spending period,” says Mike Schussler at Economists dotcoza.

There are, however, signs that confidence may be returning for businesses and consumers.

“The nondecline in the BETI in the last four months is the longest in nearly five years, and provides reason for optimism,” says Schussler. The last time SA saw the BETI record no monthly declines for four consecutive months was in April 2013.

“Therefore, while monthly growth is not high, the BETI results suggest there is a positive sentiment in the country enabling a higher level of transactional activity.”– BankservAfrica