Given the weak domestic growth backdrop and muted inflationary pressures, we expect the SARB to cut the repo rate by 25 basis points next week. Mining production continued to decline in 2019, decreasing by 1.5% y/y in May from a revised contraction of 1.2% in April. May manufacturing production increased by 1% y/y, broadly in line with Bloomberg's consensus of 1.4% y/y
It has become increasingly evident that global growth is slowing and we are of the view that a synchronised global slowdown will persist for the remainder of the year. The trade balance registered a surplus of R1.7 billion in May compared to a deficit of R3.5 billion in April. The Absa manufacturing PMI edged up to 46.2 points in June compared to 45.4 in May. New vehicle sales contracted 1.6% y/y in June and the FNB House Price Index (HPI) trended up in June, recording 3.5% y/y from 3.3% in May.
You use the information contained on this page (the "Information") at your own risk. First National Bank, a division of FirstRand Bank Limited ("the Bank"), provides no warranties or guarantees, whether express, implied or otherwise, in respect of the Information, its accuracy and/or reliability. Without limitation, the Bank does not warrant that the Information will ensure your compliance with accounting, auditory, financial, legal, business and/or tax requirements or will improve your business' performance. The Information does not constitute advice and should not be used as a substitute for obtaining professional or other advice where necessary. Neither the Bank nor its holding company, subsidiaries or other group companies will be liable to you for any claims, demands, expenses, costs, losses or damages, of whatsoever nature, suffered or incurred by you in respect of your use of the Information.
The Bank is the owner of the copyright in all content on this page. You may not publish, modify or adapt this content in any medium or format without the prior written consent of the Bank.