JOHANNESBURG, Sept 8 – Stunningly weak factory output data and another drop in business confidence on Thursday pointed to a dismal third quarter for South Africa’s economy, supporting the case for a cut in interest rates already at 30-year lows.
Weighed down by strikes at home, a strong currency, and ebbing demand abroad, manufacturing output in Africa’s biggest economy fell 6.0 percent in July against forecasts of a slender contraction.
Government bonds gained after the data, showing more investors believe an interest rate cut is likely — compared with just three months ago when the main debate was whether they would go up in September or November.
Source: Reuters Africa newsletter
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