ECONOMY: FNB Economics Weekly Highlights
Recent Gauteng Business News
- Continued Strengthening Of First Time Buyer Property Prices
- Exciting Developments Along the N1 Corridor Achieved
- Starfish Acquire An Accounting Solution with IQ Business Grp
- Saving in a Rising Interest Rate Environment: Ensure You Account for Inflation
- Property Point Says Understanding the Revised B-BBEE Codes Has Big Benefits for Small Business
·SA: The week’s data releases were dominated by inflation (+6.1% y/y in September) and retail trade sales (+0.2% y/y in August), but Stats SA also published August tourism and migration data on Monday.
·SSA: Headline inflation in Namibia, Botswana and Nigeria pushed higher in September. Higher food and weakening exchange rates—with the exception of Botswana—remain the main culprits behind rising inflation.
·Global: China GDP remained unchanged at 6.7% y/y for the third consecutive quarter in 3Q16. September headline inflation climbed higher in the US (1.5% y/y from 1.1%), the UK (1% y/y from 0.6%) and the Eurozone (0.4% y/y from 0.2%) largely due to increasing energy prices.
The Week Ahead
Attention will fall on the delivery of the MTBPS next week. While we anticipate that the government will remain committed on its fiscal consolidation path, we are assessing the risks of reaching targets set at the beginning of the year to be on the downside. Growth and inflation forecasts are likely to be revised lower. While year-to-date figures suggests that the government remains within its set targets, the recent acceleration in expenditure is somewhat concerning. Furthermore, while some steps have been taken towards reforming SOE’s, it may still not be viewed as enough to avoid a downgrade. High food, household appliances and basic precious and non-ferrous metals prices should have kept producer price inflation elevated in September. The rate of increase should, however, have been limited by the decline in fuel prices.
Business News Sector Tags: Economy|