(3 minutes read)
· There are green shoots of SA economy slowly starting recover
· But the tempo of pick up is very slow as compared to performance recorded in the first quarter of the year
· Industrial production as economic activity improved after lockdown restrictions eased
· June was the first month to show an uptick since November, up 3.7% on a month on month basis
· However, on a year-on-year basis, economic activity for June fell by 32.3%
There are green shoots of the SA economy slowly starting to recover. But the tempo of pick up is very slow as compared to performance recorded in the first quarter of the year.
The SA Reserve Bank (SARB) recently released data showed that the composite indicator for July increased by 2.6% month-on-month. Eight out of 10 components recorded increase. The lead sector which registered uptick was the number of residential building plans approved.
The composite coincident indicator gives an advance estimate on GDP. This has increased by 3.7% on a month-on-month basis for June. It was supported by increases in retail and new vehicle sales. Industrial production as economic activity improved after lockdown restrictions eased. June was the first month to show an uptick since November, up 3.7% on a month on month basis. However, on a year-on-year basis, economic activity for June fell by 32.3%.
