ECONOMIC WEEK AHEAD: All data likely to point at SA’s weak economy
The labour force survey, trade balance data and PMI will be closely watched this week, writes Claire Bisseker
A raft of important data releases are due this week, including the quarterly labour force survey, SA’s trade balance and the manufacturing purchasing managers’ index (PMI). All are likely to confirm weak economic activity during the second quarter. First up on Monday is private sector credit extension (PSCE) for June. This slowed sharply in May to 4.5% year on year from 5.1% year on year in April. Though credit extension to both households and corporates has been lacklustre, May’s drop was driven by a R2bn drop in loans and advances to corporates. "The weak economic growth backdrop … persistently depressed business confidence and declining investment rates have contributed to the dampened corporate demand for credit," explained Investec economist Lara Hodes. She expects PSCE growth to remain muted at about 4.8% year on year in June. Consumer lending FNB chief economist Mamello Matikinca hopes for an uptick in lending to consumers on the back of better instalment credit growth, given...
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