South African Economy Continues to Slowdown
Monthly market growth index indicates slower levels of growth in October
Inflationary pressures dissipate with meagre increase from last month
Profit Margins continue to fall
Business conditions in South Africa continued to hold steady in October. The Headline Sales Managers’ (SMI) – a composite indicator designed to provide the most up-to-date assessment of business activity – posted 49.9, down from 50.2 in September. This represents the seventh consecutive month of deceleration in economic activity in over a year, but importantly the Market Growth Index is above the 50.0 ‘no change’ level which is consistent with the positive GDP growth but slower than the rate in Q3. Overall, the latest SMI data suggests conditions remain challenging and there is unlikely to be a significant improvement in the economy soon with growth rates remaining muted for the remainder of the year.
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