Positive US economic data reignites markets but underlying trends in SA remain lacklustre
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The release of generally encouraging CPI and PPI data in the US, together with a strong retail sales report, helped global equity and bond markets to recover last week. There are high expectations that the US Federal Reserve will start to reduce interest rates in September, probably starting with a 25 bps cut.
In SA, strong June retail sales delivered a positive surprise to markets, but may not be sustainable. Mining data was disappointing, underlining a longer-term decline in the sector which goes beyond electricity supply. The unemployment rate moved above 33% in Q2 2024, with about 8.5 million unemployed. Without higher economic growth, SA’s unemployment will continue to increase. Click here to listen to the podcast.
In SA, strong June retail sales delivered a positive surprise to markets, but may not be sustainable. Mining data was disappointing, underlining a longer-term decline in the sector which goes beyond electricity supply. The unemployment rate moved above 33% in Q2 2024, with about 8.5 million unemployed. Without higher economic growth, SA’s unemployment will continue to increase. Click here to listen to the podcast.
