Advertise with fastmoving.co.za
 
 

Growth in credit granted to the private sector accelerated more than expected in June.
Growth in credit granted to the private sector accelerated more than expected in June.

Credit growth springs a positive surprise

ECONOMIC NEWS

By Andries Mahlangu - Jul 31st, 09:50

Growth in credit granted to the private sector accelerated more than expected in June, an encouraging sign from a market that has been relatively subdued since the start of 2018. 

Private sector credit extension (PSCE) grew at an annual rate of 5.68% in June, from 4.54% in May, Reserve Bank data showed.

Trading Economics had anticipated PSCE growth of 4.7%. Investec had put it at 4.8%.

The main restraining influence on PSCE growth has been the corporate sector, Investec economist Lora Hodes said ahead of the data release.

"The weak economic growth backdrop, along with persistently depressed business confidence and declining investment rates, have contributed to the dampened corporate demand for credit."

M3 money supply, the Bank’s broadest measure of how much money is circulating in the economy, grew 5.77% year on year in June, from 5.73% in May, data showed.

When money supply increases, it typically increases the availability of loans. The higher the money supply growth, the higher the growth in available funds.

 

Related News

Superfruits can help save SA economy
21/08/2018 - 08:54
While South Africa was creating jobs and achieving some economic growth, these processes were not happening fast enough to keep up with the rate at which the population was growing and people were entering the job market.

Wholesale trade sales shrank in real terms in June compared to 2017
17/08/2018 - 09:56
Wholesale trade sales shrank in real, inflation-adjusted terms in June compared with a year earlier and eked out a 0.1% gain for the quarter.

June’s retail growth just a third of that expected, raising recession risk
16/08/2018 - 09:26
June’s retail sales growth was only a third of what economists expected, raising the risk that SA entered a technical recession in the second quarter.

Treasury’s possible challenges following the VAT Panel report
14/08/2018 - 10:57
The recommendations put forward by the review panel on the zero-rating of certain items for Value-Added Tax (VAT), may be challenging for Treasury to enforce.

Food crisis is much bigger than simply tinkering with zero-rating VAT
13/08/2018 - 13:54
The government should stop tinkering with zero-rating of the VAT system and rather focus its efforts on regulating food prices and increasing wages and social grants, according to Pietermaritzburg Economic Justice and Dignity Group founder Julie Smith.