Encouraging rise in Absa PMI as blackout fears ease

Some encouraging news for South Africa on Thursday - a rise in the Absa Purchasing Managers' Index (PMI) indicates an uptick for business conditions in the next six months.

This is largely thanks to the lack of load shedding seen during the month of April

Goolam Ballim, chief economist at Standard Bank, explains.

During the first quarter of this year business conditions generally and especially in the industrial sector, subsided, to a large degree because of South Africa's electricity woes.

Goolam Ballim, Chief economist - Standard Bank

However, in April we did see a rebound to the levels that prevailed at the end of 2018.

Goolam Ballim, Chief economist - Standard Bank

Ballim points out that it is a 50/50 situation.

About half of South Africa's manufacturing industry is experiencing mild evidence of growth. The other half is somewhat shrinking.

Goolam Ballim, Chief economist - Standard Bank

He says the election outcome will determine what happens in the second half of the year.

We need to get over next week, the elections and perhaps a market frenzy outcome that then engenders further confidence and a more palpable revival in the latter half of 2019 into next year as well.

Goolam Ballim, Chief economist - Standard Bank

Ballim says after former president Jacob Zuma's administration "sucked the life out of this economy", confidence is now growing that under President Cyril Ramaphosa there will be further political and institutional stabilisation.

Markets are really holding their breath for a Cyril Ramaphosa-led ANC victory which galvanises the reform- and the cleanup agenda.

Goolam Ballim, Chief economist - Standard Bank

For more from Ballim, take a listen:


Recommended

by NEWSROOM AI
Read More
 #WeAreNotLabRats takes off, French doctor apologises for Africa comment

#WeAreNotLabRats takes off, French doctor apologises for Africa comment

Two French doctors sparked outrage with their idea for Africa to be used as the testing ground for coronavirus vaccines.

[VIDEO] Virtual game drives: the perfect lockdown family 'outing'

[VIDEO] Virtual game drives: the perfect lockdown family 'outing'

Tintswalo Lodges' Alistair Leuner gives the lowdown on experiencing the bush from the comfort of your home.

Pretoria man arrested for allegedly mocking lockdown measures on social media

Pretoria man arrested for allegedly mocking lockdown measures on social media

Police say a video shows two young men travelling around Pretoria, bragging they do not comply with the regulations.

Don't fall into an IMF debt trap Tito Mboweni! - political commentator

Don't fall into an IMF debt trap Tito Mboweni! - political commentator

Oscar van Heerden on the reasons he believes South Africa should not turn to the IMF for a general loan amid Covid-19 crisis.

SA-animated 'Zog' wins International Emmy for Best Kids Animation

SA-animated 'Zog' wins International Emmy for Best Kids Animation

The short film about a clumsy young dragon was co-directed by a South African and animated in Cape Town.

Could SA student's bug-killing coating innovation be applied for Covid-19?

Could SA student's bug-killing coating innovation be applied for Covid-19?

Michael Lucas on his self-sanitising technology and why it could also play a role in a post-pandemic world against superbugs.

Popular articles
[WATCH] Mom creating virtual drive-through for son's birthday has us talking

[WATCH] Mom creating virtual drive-through for son's birthday has us talking

Khabazela shares some of the videos that went viral on Twitter and Facebook.

[WATCH] Cute siblings helping each other up the stairs goes viral

[WATCH] Cute siblings helping each other up the stairs goes viral

Khabazela shares some of the videos that went viral on Twitter and Facebook.

What are the opportunities that lie ahead for SA after COVID-19?

What are the opportunities that lie ahead for SA after COVID-19?

Tech entrepreneur Alan Knott-Craig gives reasons the country is in a better position during the outbreak than other places.

 'Easter during COVID-19 outbreak must be time to be introspective about faith'

'Easter during COVID-19 outbreak must be time to be introspective about faith'

South African Council of Churches general-secretary Bishop Malusi Mpumlwana reflects on the upcoming Easter holiday in a lockdown.

COVID-19 death toll rises to 18 in SA, cases at 1,845

COVID-19 death toll rises to 18 in SA, cases at 1,845

In a statement released on Wednesday night, the minister said the cases had gone up to 1,845.

Lockdown: Companies with good service on social media - and those without

Lockdown: Companies with good service on social media - and those without

Consumer journalist Wendy Knowler investigates which companies are meeting their customers’ needs on social media.

How to support outdoor entertainment indoors

How to support outdoor entertainment indoors

Theatres across the world have gone dark, but you can still support and watch the arts while at home

How did a single Netcare hospital become the epicentre of Covid-19 in KZN?

How did a single Netcare hospital become the epicentre of Covid-19 in KZN?

Bruce Whitfield interviews Richard Friedland, CEO at Netcare – owner of the hospital at the epicentre of KZN’s Covid-19 outbreak.

Expect no price hikes or shortages (except rice, pasta) from us - Tiger Brands

Expect no price hikes or shortages (except rice, pasta) from us - Tiger Brands

Tiger Brands CEO Noel Doyle assures South Africans that there are sufficient supplies of most of the company's products.

Dis-Chem launches drive-through COVID-19 testing sites

Dis-Chem launches drive-through COVID-19 testing sites

The company says the tests will cost R850 each and it may take 24 to 48 hours to get your results back.