TURNAROUND DELAYED
Economy remains weak, quarterly manufacturing data shows
The rand reacts favourably to Statistics SA’s data showing manufacturing grew 1.1% in April, slightly above a consensus forecast of 1%
First-quarter manufacturing data that was released on Thursday disappointed, showing the limitations to the confidence enjoyed since the accession of Cyril Ramaphosa. While manufacturing production figures for April are 1.1% higher than the comparable period a year ago, production fell 0.6% compared to March, suggesting that the economy has not picked up at the start of the second quarter of the year. First-quarter data released this week showed economic growth dipped. The quarterly fall in the economy was the largest since the second quarter of 2009, indicating that the buoyant mood has done little yet to boost the economy. Manufacturing data suggested the economy remained weak after a very poor performance in the first quarter, said Capital Economics economist John Ashbourne. “The official data suggest that the surge in confidence surrounding the February appointment of Ramaphosa has not yet flowed through to the real economy.” While growth is expected to pick up in 2018, Ashbourn...
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