Private sector credit extension, the trade balance and the manufacturing purchasing managers’ index (PMI) will be scrutinised this week for signs that the economy may be perking up off a low base. First off, on Tuesday, will be the trade balance for January. SA typically incurs a trade deficit in January because imports increase following the seasonal decline in December. The country posted a R19.5bn deficit in January 2016, a R23.5bn deficit in January 2015 and a R16.1bn deficit in January 2014. The size of the deficit may be smaller this January, however, as the weakness in domestic demand has dampened imports, says Investec economist Kamilla Kaplan. Equally, the apparent improvement in global demand conditions could have provided a slight lift to exports. BNP Paribas Securities economist Jeff Schultz also believes SA will probably deliver a more positive net trade performance this year as long as industrial commodity prices hang onto their gains. Private sector credit extension d...
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