ECONOMIC WEEK AHEAD: Plenty of opportunities to take the economy’s temperature
The week will be packed with data, from the purchasing managers index and unemployment numbers to vehicle sales, while S&P will weigh in with its credit rating outlook
Rand volatility may resurface this week, amid a slew of economic data releases and an update from S&P Global Ratings on its SA macro and sovereign credit ratings outlook. A negative Moody’s report on Friday, issued in response to worse-than-expected fiscal metrics announced in last week’s medium-term budget policy statement, caused the rand to weaken marginally against the dollar. Moody’s is the only ratings agency that holds an investment-grade rating for SA, but its fiscal outlook for the country is dire and it has cautioned that this could negatively affect SA. S&P, which already has SA on a junk rating, will update its outlook at its annual insurance seminar on Tuesday, though ratings action is only expected in November. However, the S&P report may be overshadowed by employment numbers, which will be released as part of the third-quarter labour force survey on Tuesday. Unemployment is expected to remain stubbornly high, as growth faltered in the second quarter when the economy c...
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