ECONOMIC WEEK AHEAD: Few changes likely in economy under strain
Retail sales performance data will reflect the effects of the weaker economy and consumer demand, writes Asha Speckman
The strained economy was reflected in data released throughout 2016 and, few changes are expected in the short term. Last week, the manufacturing sector showed an improvement in manufacturing output. But weak local demand had contributed to an underwhelming quarter-on-quarter outcome and stoked the view that the sector was unlikely to contribute meaningfully to (still unpublished) fourth-quarter GDP, economists said. The effects of the weaker economy and consumer demand, which has been strained by job losses and weak real disposable income growth, is expected to continue to reflect in retail sales performance, which will be published on Wednesday. Weak consumer confidence and stricter credit regulations have also affected the retail sector’s performance. Sales are forecast to stagnate to 0.1% year on year in November compared to -0.2% year on year in October. This pales in comparison to sales growth of 3.3% in 2015. Economists are also looking to the mining production and sales data...
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