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
Africa needs activists, not leaders: Meet SA's AU youth council member

Africa needs activists, not leaders: Meet SA's AU youth council member

Listen to insights from Shakira Choonara - award-winning, internationally recognised youth and healthcare activist.

EFF wants 'apartheid denialist' de Klerk prosecuted and Nobel Prize withdrawn

EFF wants 'apartheid denialist' de Klerk prosecuted and Nobel Prize withdrawn

The EFF responds to FW de Klerk Foundation statement after demanding the former president's removal from Parliament during Sona.

Eskom shifts load shedding to stage 2

Eskom shifts load shedding to stage 2

Stage 2 load shedding is in force from 9 am on Sunday.

Me-time, partner time and parenting - finding the right balance

Me-time, partner time and parenting - finding the right balance

Parenting expert Nikki Bush has advice on balancing everyone's needs amid the demands of busy family lives.

[WATCH] Zozi returning to US after colourful Cape Town welcome

[WATCH] Zozi returning to US after colourful Cape Town welcome

Zozibini Tunzi dazzled Capetonians during the final leg of her homecoming tour after bagging the Miss Universe crown in December.

Weekend load shedding upgraded to stage 3

Weekend load shedding upgraded to stage 3

After announcing stage 2 power cuts on Friday evening, Eskom now says stage 3 will be implemented from Saturday morning.

Popular articles
Jack Parow talks money, honey

Jack Parow talks money, honey

Jack Parow tells The Money Show how he runs his finances cooler than you.

'Life is short, have an affair' - this company makes millions out of skelmpies

'Life is short, have an affair' - this company makes millions out of skelmpies

Ashley Madison has 60 million members globally and has turned infidelity - cheating on a partner - into big business.

 Top 3 stocks of the week: African Rainbow Capital, Sasol and Reckitt Benckiser

Top 3 stocks of the week: African Rainbow Capital, Sasol and Reckitt Benckiser

FNB's Chantal Marx on her stock picks of the week and why.

 Anglo Platinum's CEO steps down - why?

Anglo Platinum's CEO steps down - why?

Chris Griffith is stepping down as Anglo Platinum's CEO.

Five men nabbed for child pornography in Gauteng appear in court

Five men nabbed for child pornography in Gauteng appear in court

Joanne Joseph spoke to colonel Brenda Muridili to find out more about the operation.

[LISTEN] 'Discovery judgment is operating in terms of the law'

[LISTEN] 'Discovery judgment is operating in terms of the law'

Prof Alex van den Heever explains a recent ruling in the case of a glaucoma patient who took on Discovery.

FW de Klerk withdraws and apologies for offensive apartheid remarks

FW de Klerk withdraws and apologies for offensive apartheid remarks

Former UN high commissioner for human rights Judge Navi Pillay says the ICC has jurisdiction from when SA signed Rome Statute.

OR Tambo introduces new bag collection service in Johannesburg

OR Tambo introduces new bag collection service in Johannesburg

Joanne Joseph spoke to BagPortr founder Juan van Rensburg to find out more and whether this will work.

SAB launches Zenzele Kabili scheme

SAB launches Zenzele Kabili scheme

The old scheme Zenzele BB-BEE scheme is winding down in April and it has generated almost R14 billion in value for South African.

UKZN staff suspend picket as university calls for talks

UKZN staff suspend picket as university calls for talks

EWN reporter Nkosikhona Duma says the SRC has reached a deadlock with the university management over historical debt.