Rand firms against dollar as manufacturing data surprises to the upside
The rand was stronger on Thursday afternoon as better-than-expected manufacturing data buoyed sentiment in the forex market, in a flat euro environment.SA’s manufacturing output grew 2.3% in May from the same month in 2017. On a monthly basis, the sector grew 1.5%, after declining by a revised 0.5% in April 2018. The market was expecting production to rise by a modest 0.4% month on month.However, mining production continued its downward trajectory in May, contracting 2.6% year on year, its third consecutive month of falls. However the rate of contraction did slow, after a 4.4% fall in April.Coupled together, today’s figures suggest that the contraction in SA’s economy slowed in the middle of the second quarter, Capital Economics analysts said. "Even so, GDP probably continued to fall."The focus now turns to retail sales for May, which are due next week. A subdued number will raise the possibility of another negative quarter, technically placing the country into recession, following ...
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