Hits & Misses Manufacturers’ mood improves, but EU blasts scrap-metal ban

A GAUGE measuring manufacturers’ sentiment rose more than expected in August as power cuts eased, fuel prices dropped and flood-damaged facilities owned by Toyota reopened. Absa’s purchasing managers’ index, compiled by the Bureau for Economic Research, jumped to 52.1 points from 47.6 in July. That was well above the 48.2 median of economists’ estimates in a Bloomberg survey.

TRUWORTHS

International reported a 49.9% rise in annual profit as consumers coming out of lockdowns splashed out on items to rejuvenate their wardrobes and homes. The retailer said headline earnings per share rose to 779.8c in the 53 weeks ended July 3.

PRIVATE education group ADvTECH reported a 23% rise in first-half profit, which it said was due to improved enrolment at its schools and tertiary divisions, and higher business activity in the recruitment division. Headline earnings per share rose to 68c in the six months to end-June from 55.1c in the same period a year earlier, it said.

THE EU objected to a South African government proposal to ban scrap-metal exports, saying such a drastic step potentially violates provisions that govern world trade. The EU is SA’s largest trading partner and its biggest source of foreign direct investment. The bloc requires a range of metals, in part to produce some of the technology needed to transition from fossil fuel to renewable energy.

PRIVATE-SECTOR

credit extension increased for the 13th straight month, but the reading came in below market expectations as interest rates start to weigh heavily on the indebted. The Reserve Bank said private-sector credit extension increased 7.1% year on year in July, after 7.5% growth a month earlier.

AFRICAN Rainbow Minerals posted a 13% drop in full-year profit, hurt by lower iron ore and platinum group metal prices, and higher mining costs. Headline earnings per share fell to R57.87 in the year ended June 30 from R66.88 last year. — BusinessLIVE, Bloomberg and Reuters