Producer inflation slows, GDP stalls

SOUTH Africa’s headline producer inflation slowed to 6.3% year on year in October from 6.7% in September, Stats SA said. Prices at the factory gate rose by 0.5% on a month-on-month basis compared with 0.4% previously. SOUTH Africa is expected to launch its debut Islamic bond issue during the first quarter of 2014 as it seeks to diversify its financing sources, said Adnan Ahmed Yousif, the CEO of Bahrainbased Al Baraka Banking Group. GROWTH in credit demand from the private sector quickened to 7.62% year on year in October, from a revised 7.46% in September. Expansion in the broadly defined M3 measure of money supply also quickened to 7.1% from 7%. FINANCIAL services group Transaction Capital posted a 19.8% rise in year-end headline earnings a share to 93.4c (78.0c). Headline earnings were 34.6% up at R545-million following revenue growth and cost containment. SOUTH Africa’s composite leading business economic indicator rose by 1% year on year in September‚ after a 1.7% year-on-year increase in August‚ according to data from the South African Reserve Bank. SOUTH Africa’s GDP grew by just 0.7% in July to September, Stats SA said, compared with a revised 3.2% expansion in the second quarter, dragged down by a contraction in manufacturing after strikes in the automotive sector. THE European Union banned most imports of South African citrus for the remainder of this year over fears that a fungal disease found in dozens of shipments could spread to the 28-nation bloc. OFFSHORE investors sold a net R6.3-billion worth of South African stocks in the week ended November 22 and a net R3-billion in South African bonds, according to data from the JSE. SOUTH Africa’s MTN Group — Africa’s top mobile operator — cut its full-year target for new subscribers by nearly 10% as US sanctions against Iran dampened consumer demand for its largest Middle East business. ADCOCK Ingram delivered a disappointing set of year-end results as tough trading conditions and the weak rand bit deep into its profit margins. Headline earnings a share fell 17% to 350.5c‚ down from 422.4c last year.