Confidence is strong but GDP stutters

BUSINESS confidence rose to its highest level in four months in November, helped by improvements in new vehicle sales and manufacturing output. The SA Chamber of Commerce and Industry’s business confidence index rose to 93.9 from 93 in October.

FURNITURE and clothing retailer Steinhoff International reported a 12.5% rise in fourth-quarter operating profit, boosted by general merchandise sales in South Africa and Eastern Europe.

SOUTH Africa’s economy was set to stage a surprise recovery in 2017, despite having limped along for most of 2016, according to a Deutsche Bank report. The bank expected the country to record 1.4% growth next year.

BRITISH Chancellor of the Exchequer Philip Hammond pledged millions of pounds in aid for South Africa’s developmental programmes, describing the country during a visit as a “key strategic partner” for the UK post-Brexit.

THE economy barely grew in the third quarter, renewing fears that the reprieve from ratings downgrades would only be temporary. Gross domestic product expanded by just 0.2% against a revised 3.5% in the second quarter, Stats SA data showed.

MINING production unexpectedly contracted in October. Output shrank 2.9% from a year earlier, Stats SA said, compared with September’s revised 4.7% growth and coming in much worse than expectations of growth of about 2.6%.

AFTER years of speculation, Citroën is leaving South Africa. Peugeot Citroën SA MD Francis Harnie confirmed the marque would no longer be available in the country, but said Citroën and DS customers would “be looked after”.

SOUTH Africa’s current account deficit widened to 4.1% of gross domestic product in the third quarter from a revised deficit of 2.9% in the second quarter, the Reserve Bank said in its December quarterly bulletin.