Factory output rises, but confidence wanes

MANUFACTURING output rose 5.6% year on year in July, above expectations, after a revised 0.5% contraction in June, Stats SA says. On a month-onmonth basis, factory production was up 0.3% but fell 1.3% in the three months to July compared with the previous quarter. NET gold and foreign exchange reserves edged up to $41.244billion (about R564.4billion) in August from $41.007billion in July, Reserve Bank data show. Gross reserves increased to $46.078-billion from $45.823-billion previously. FURNITURE group Steinhoff International has posted a 36% rise in annual headline earnings, supported by cost savings and growth in the discount retail market. Diluted headline earnings per share totalled 420.1c (416.7c), it said. AFRICAN Bank Investments, which collapsed last year amid record losses, says that the business created out of the bank’s viable assets will make a profit in 2017. The newly created banking group will start operating in February. BUSINESS confidence in South Africa dropped a further five points to an almost four-year low of 38 in the third quarter after dipping six points in the second quarter‚ the Rand Merchant Bank-Bureau for Economic Research business confidence index shows. RATINGS agency Fitch has warned that the risk of a downgrade to South Africa’s sovereign rating is increasing. In June, Fitch confirmed its BBB rating for the country with a negative outlook. PETROCHEMICALS firm Sasol lowered its full-year dividend to R11.50 from R13.50 after weaker oil prices hit earnings. The company, which relies on oil for 40% of its revenue, said headline earnings a share fell to R49.76 from R60.16. FIRSTRAND will not match this year’s 13% rise in annual profit in 2016 due to weaker demand for loans from businesses, CEO Johan Burger says. The company raised annual diluted headline earnings per share to 381.4c.