South Africa manufacturing output beats forecasts
South Africa’s
manufacturing output rose more than expected on an annual basis in
June, boding well for economic growth and supporting the case for the
central bank to leave rates unchanged at 6.5 percent. Statistics South
Africa said on Wednesday that output rose 8.8 percent year-on-year in
volume terms, up from a revised 8.1 percent increase in May and beating
forecasts for a 6.8 percent rise.
“(The data) reduces the case for an
interest rate cut. It is more in line with our long-term view that the
central bank will keep rates unchanged until about the third quarter of
next year,” said Johannes Khosa, economist at Nedbank.
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