SA has exited from recession in the third quarter of this year partly supported by an improvement in manufacturing activity and by the retail and wholesale trade sectors, data was expected to show this week. Economists are forecasting an expansion of at least 0.5% for the third quarter compared to a contraction of 0.7% in the second quarter and after growth was negative 2.6% in the first quarter. Citadel chief economist Maarten Ackerman said the mining sector had had a difficult quarter and was likely to contribute negatively to GDP. But manufacturing and retail were positive. "It seems consumers are not down on their knees," he said. He expects GDP growth of less than 1% for the third quarter. Trading Economics has forecast 0.5% against a survey consensus of 0.6%. Absa Capital has forecast 1.5%. Agriculture, however, had been the "swing factor over the past couple of quarters" and in the first half of the year the sector performance had been weaker due to base factors, Ackerman sai...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.