Hits&Misses

Inflation loses steam, but alas, so do key business indicators

INFLATION moderated to an annualised 4.1% in September, surprising analysts and boosting the expectation that SA’s embattled consumers may get another interest rate cut in 2019. Inflation, as measured by the annual change in the consumer price index, decelerated from 4.3% in August. The median forecast was for inflation to remain at 4.3%, according to Bloomberg.

PICK n Pay delivered strong sales and profit growth in the six months to end-September, thanks to centralisation of its distribution facilities and more use of data analytics to monitor shopper trends. The grocer posted a 6% increase in turnover and a 12.5% improvement in trading profit.

SA’S largest building materials retailer, Cashbuild, said in an update that its new stores had outperformed its existing store base, helping group revenue rise 2% in its first quarter to end September.

THE Reserve Bank’s composite leading business cycle indicator fell for the 11th consecutive month in August on an annualised basis, confirming that SA’s economy is struggling to gain momentum. The indicator fell 1.3% to 103.8 points, against the 103.7 expected in the Bloomberg consensus.

CALGRO M3 has become the latest victim of social unrest, saying protests and land invasions had cost it the equivalent of about a quarter of its interim revenue and caused it to plunge into a loss. The company, which develops housing and manages memorial parks, reported a headline loss of R4.1m against a R4m profit in the comparable period.

STANDARD Bank wrote down the value of its stake in ICBC Standard Bank plc due to lowerthan-anticipated client flows. It impaired its

40% stake by a further R2.4bn for the three months to September.