South Africa: Tentative Recovery Likely, Bank Warns
Business Day (Johannesburg)
26 October 2010
Johannesburg — THE leading indicator of business activity in SA dipped slightly in August after a strong rise in July, adding to evidence that the recovery is tentative and may slow down over the rest of the year.
The leading indicator, which points to trends six to 12 months ahead, declined 0,1% in August, after a robust 1,3% rise during the month before, figures from the Reserve Bank showed.
The Bank’s economist, Iaan Venter, said that while it was dangerous to look at one month in isolation, the monthly dip was part of a sideways trend, suggesting that growth remained subdued.
“I still believe it’s indicating a moderate growth trend,” he said.
Other figures yesterday showed that company failures rose 2,1% last month compared with [continue reading]