Exports drive trade surplus, but household credit growth extension slumps
Domestic economic activity is still subdued owing to low levels of business and consumer confidence, and credit growth is moderate
SA recorded a trade surplus in June, driven by growth in exports and a recovery in commodity prices. However, imports continued to be under pressure. Meanwhile, there have been moderate improvements in credit extension to households and the private sector, indicating an increasingly tighter domestic lending environment, which is driving down local demand. The South African Revenue Service (SARS) recorded a R10.67bn trade surplus for June 2017, attributable to exports of R102.14bn and imports of R91.47bn. In June 2016, SA achieved a trade surplus of R8.38bn. Domestic economic activity has remained subdued in the light of low levels of business and consumer confidence, and credit growth has remained moderate. Growth in credit to households edged up slightly in June, while credit to companies eased. FNB economist Mamello Matikinca said: "Anecdotally, we have been told that corporate credit extension is more a reflection of a working capital cushion many corporates are implementing, as ...
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