Growth quickens -- and inflation, too
SOUTH Africa’s economy grew 3.8% in the final quarter of last year as mining and manufacturing recovered from strikes. Gross domestic product growth accelerated from an annualised 0.7%, Stats SA said.
CHEMICALS and explosives maker AECI posted a 57% rise in 2013 earnings, lifted by a weaker rand as it grew its business in the African mining sector. Headline earnings a share totalled 791c against 547c a year earlier.
BIDVEST reported a 16% rise in half-year profit, helped by acquisitions and favourable currency swings. The industrial conglomerate said headline earnings a share totalled 842.3c compared with 725c a year earlier.
LIBERTY Holdings posted an 11% jump in full-year earnings on the back of stronger insurance and asset management business. BEE normalised headline earnings a share came in at 1 439.6c from a restated 1 300.1c the previous year.
GROWTH in credit demand from the private sector quickened to 8.16% year on year in January from 6.14% in December. Expansion in the broadly defined M3 measure of money supply also quickened to 6.41% from 6.15%.
HEADLINE producer inflation accelerated to 7% year on year in January from 6.5% in December, said Stats SA. Prices at the factory gate rose by 1.0% on a month-on-month basis in January compared with 0.5% previously.
SOUTH Africa’s biggest construction company, Aveng, reported a drop in half-year profit, hit by delays in public building projects and labour unrest. Headline earnings a share fell 21% to 82.1c, it said.
THE economy faces a challenging first half of the year‚ according to the Reserve Bank. It said its composite leading business economic indicator dropped 0.8% year on year in December after a 0.1% decline in November.
LOGISTICS group Imperial Holdings reported no growth in first-half profit, reflecting the struggles of its core customers in the retail and manufacturing industry. Headline earnings a share were flat at 831c.
SOUTH Africa remains vulnerable to sovereign rating downgrades‚ with the three major rating agencies and analysts saying they were sceptical about the forecasts in the budget for growth and the current account deficit.