Manufacturing up but confidence falls

MANUFACTURING production unexpectedly grew by 0.5% year on year in volume terms in June after contracting by a revised 3.8% in May, said Stats SA. On a month-on-month basis, factory production was up 1.4%. SOUTH African wireless carrier MTN Group posted a 9% rise in interim profit as strong demand for its high-margin data services offset slow voice growth at home. Diluted headline earnings a share totalled 725c (665c). NEDBANK Group reported a 16% jump in first-half profit, buoyed by a drop in bad debts and stronger earnings from lending. Diluted headline earnings totalled 965c a share from 831c a year earlier. US aircraft-maker Boeing has teamed up with South African Airways to develop jet fuel from a tobacco plant as part of efforts to cut carbon emissions and promote green energy in Africa’s most advanced economy. RICHARDS Bay Coal Terminal exported 5.4 million tons of coal in July from 4.9 million tons in June, it said. Its coal stocks, which end up in power stations in Europe and Asia, stood at 4.9 million tons at end-July. SA’s business confidence fell to 87.9 in July from 89.7 in June, its lowest level since 1999, amid concerns that unions’ rising wage demands would lead to higher unemployment, the SA Chamber of Commerce and Industry said. OFFSHORE accounts sold a net R1.7-billion in South African stocks and R2.7-billion in South African debt in the week ended August 1, data from the Johannesburg Stock Exchange showed. BUSINESS conditions in South Africa’s private sector deteriorated further in July, with HSBC’s purchasing managers’ index falling to a record low of 46.4 as recent strikes in the mine and metals industries hit demand. OLD Mutual said profit in the first six months dropped 5% as the rand weakened amid South Africa’s economic slowdown. Adjusted earnings for the year through June were £424-million from £448-million a year earlier. SOUTH Africa had to find R250-billion in support for Eskom within weeks to prevent it from being cut to junk and dragging down the country’s credit rating, Public Enterprises Minister Lynne Brown said.