Hits&Misses

Indicator ticks a bit higher, municipalities hit a new low for audits

THE Reserve Bank’s leading business cycle indicator picked up a little in April compared with March, although it extended its year-onyear losing streak to seven consecutive months. The indicator rose 0.7%, a sign that second-quarter economic activity had recovered a little after a tough first quarter, data from the Reserve Bank showed.

PUBLIC enterprises minister Pravin Gordhan announced that Denel’s 3,500 employees would receive their full salaries for June. Earlier, it emerged that Denel could pay only 85% of salaries for June due to cash-flow problems. Gordhan said during a debate on the state of the nation address that a lender had come to the assistance of Denel.

ANGLO American Platinum said earnings in the six months to endJune would leap by at least 80%, thanks to higher platinum-group metals prices in rand terms.

ONLY 18 municipalities managed to obtain clean audits for the previous financial year, according to auditor-general Kimi Makwetu. While the majority were in the DArun Western Cape, the province did regress from the 70% clean audit figure it obtained in 20162017, to 40% in 20172018. Makwetu said the outcomes of 63 municipalities of those audited for 2017-2018 had regressed, and only 22 improved.

RISING fuel costs maintained pressure on manufacturers’ input costs in May. Farm and factory gate inflation, as measured by the annual change in the producer price index, moderated to 6.4% year on year from April’s 6.5%.

SA’S economy remains stuck in its longest downward cycle since 1945, adding to the risk it may fall into its second recession in a year. The economy entered the 67th month of a weakening cycle in June, according to the Reserve Bank’s Quarterly Bulletin.