Following 11 months of successive gains, the FNB HPI annual house price appreciation slowed in May to 4.1% y/y, from 4.6% in April. Data from the SARB shows that mortgage credit has been rising steadily since 2H20, reaching 5.6% y/y in April, from 4.4% y/y in March. Segmenting by purchase price shows that experiences have been uneven across the spectrum, with buyers in the upper segments benefiting the most.
Stats SA released GDP figures for the first quarter of the year. GDP grew by 4.6% q/q, following downwardly revised growth of 5.8% q/q. We have adjusted inflation lower in 2021, from 4.1% to 4.0%. The RMB/BER Business Confidence Index jumped by 15 points to 50 in 2Q21. Total mining output grew by 116.5% y/y in April and total manufacturing output grew strongly by 87.9% y/y in April.
Private sector credit extension slipped deeper into contraction territory, recording a decline of 1.8% y/y following a -1.5% y/y reading in March. In the second half of 2020, we notice divergent trends between household unsecured credit and secured credit. The trade balance remained in surplus at R51.2 billion in April. Stats SA’s Quarterly Labour Force Survey data showed the economy lost 28 000 jobs in 1Q21 relative to 4Q20, while unemployment increased by 8 000 over the same period.
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