ECONOMIC WEEK AHEAD: New data will show if SA is enjoying growth
August manufacturing figures are expected to show marginal growth
The August mining and manufacturing production figures are expected to give a glimpse into how SA’s economy is shaping up in the third quarter after a strong second quarter. On Tuesday, Stats SA will release August’s manufacturing production figures. Manufacturing output has contracted on a year-on-year basis for the past four months. First National Bank economist Mamello Matikinca expects the August print to break this trend with marginal growth. The August Absa purchasing managers index (PMI) rose from 42.9 in July to 44 points, which suggests slightly better growth. Matikinca said: "Higher oil and fuel prices are also likely to lend support to overall output. Nevertheless, despite a more favourable global backdrop and a weaker rand, which should be a tailwind for manufactured exports, the local manufacturing sector remains biased to production for local consumption, which [is] weak." Investec economist Kamilla Kaplan expects a contraction of 0.8% year on year after a decline of 1...
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