Analysts gloomy about prospects for demand
Despite improvements in some indices, many are revising down earlier growth forecasts
Despite indications that the South African economy is strengthening, economists are taking a grimmer view. Standard Bank’s purchasing managers’ index (PMI), released on Wednesday, was upbeat, although Standard Bank economist Thanda Sithole acknowledged there were remaining risks to the economy in the context of global trade worries, higher international oil prices, sustained currency weakness and a continuing debate on land expropriation. Sithole said private sector activity had expanded for the first time in two months, signalling that momentum had returned to the economy, and forecast that the PMI would for the rest of 2018 largely show signs of improving domestic business conditions influenced by consumption spending and reasonable global growth. The index inched up to 50.9 in June from 50.0 in May, with the subindices for output, new orders and employment all above the 50 mark that separates expansion from contraction. But economic activity has stalled in recent months. First-qu...
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