ECONOMIC WEEK AHEAD: Manufacturing and mining may improve
Stronger data depend on an improvement in the economy’s overall growth performance, something Zuma’s cabinet reshuffle may have snuffed out
Financial markets are likely to remain volatile after Fitch Ratings joined S&P in downgrading SA to junk status last week.Fitch is the first of the agencies to cut the rating on SA’s rand-denominated debt to junk status. The downgrade could prompt some forced selling of government bonds from global hard currency bond indices.The Emerging Market Bond index requires a country’s long-term foreign currency ratings to be ranked above "high yield" by at least two major ratings agencies.Statistics SA will publish manufacturing data on Tuesday, followed by retail sales on Wednesday and mining production data on Thursday.A modest recovery in the manufacturing sector is expected after the Absa Purchasing Managers index (PMI) averaged 51.7 index points in January and February compared with just 47 in December. A reading above 50 indicates positive sentiment and possible expansion.But despite the improvement in the PMI, manufacturing output fell by a very disappointing 0.4% month on month in Ja...
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