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 2018, 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

Consumer spending rises in December 2018
16/02/2019 - 20:48
Consumer spend over the traditional holiday period in December reflected a year-on-year increase, according to BankservAfrica’s data which measured the value and volume of sales in December.

Western Cape has high hopes for marijuana market
11/02/2019 - 10:32
The Western Cape believes the medical cannabis market has significant potential to boost the local economy and is moving fast to position itself as the country’s main hub for this new industry.

SA could have major advantage with renewable energy, say experts
06/02/2019 - 09:01
South Africa has a competitive advantage in renewable energy and could become a major destination for electricity-intensive industries once the wind and solar sector is ramped up.

Bans on some SA meat products relaxed after foot and mouth outbreak in Limpopo
04/02/2019 - 15:10
Restrictions on the export of South African processed meat products have been relaxed by some trade partners who halted imports following the outbreak of foot and mouth disease in Limpopo, the department of Agriculture, Forestry and Fisheries said.

The 7 factors that will shape SA's economy in 2030
01/02/2019 - 15:31
What will South Africa's economy look like in 10 years' time?