The economy remains under pressure and is likely to remain sluggish as continued power outages and rising interest rates erode business and consumer confidence.
Data released by the Reserve Bank showed that a composite indicator of the operational business cycle increased in September after a two-month contraction.
The indicator shows dim prospects for economic activity.
Although it increased by 1.4% for the month, it recorded a contraction of 2.3% in the previous month.
Five of the nine available sub-indices rose, while the remaining four declined.
STANLIB economist Kevin Lings elaborates. “South Africa’s leading economic indicator improved in September compared to the previous month. However, if we look at last year’s figure, it remains negative, indicating that the economy is still under pressure. When we factor in the likely further rise in interest rates, the fact that inflation is outpacing most people’s wage increases, and the continued steady load shedding, there is little doubt that South Africa’s economy is weak and likely to finish the year lower. pressure,” says Lings.
In the video below, Energy Expert Chris Yelland says the fact that Eskom has no money for diesel will make the blackouts worse:
