Trade surplus in June surprises at more than double the forecasts
By Sunita Menon - Aug 3rd 2018, 09:19
SA recorded a substantial surplus of R12bn in June, beating market expectations. This follows May’s surplus of R3.5bn, which was revised upwards by R0.33bn.
Data from the South African Revenue Service (SARS) showed that June’s surplus was attributable to exports of R110.15bn and imports of R98.15bn. Exports increased from May 2018 to June 2018 by R7.27bn (7.1%) while imports decreased by R0.89bn (0.9%).
On a year-on-year basis, this is an improvement from the surplus recorded in June 2017 of R8.7bn.
Both Investec and a Bloomberg consensus expected the trade surplus in June to be larger than that of May, at R5bn. "This estimate is underpinned by a likely continued rise in exports for the month, albeit at a slower pace," said Investec economist Lara Hodes.
She also expected a rise in the value of imports, but at a slower rate than in May, as the weaker rand exchange rate continues to intensify pricing pressure on imports.
According to FNB, June has delivered an average surplus of R6bn since 2010. "We expect a June 2018 surplus roughly in this region, but acknowledge downside risk given how poorly the mining and manufacturing sectors have fared," said FNB chief economist Mamello Matikinca.
June’s surplus reduced the year-to-date trade deficit to approximately R1.8bn, which could prove mildly currency positive in the absence of mitigating global factors, she said. It is a far cry, however, from the R25bn surplus that was recorded by the same time last year.
SA expected to sow fewer maize hectares than in previous seasons
26/11/2019 - 10:06
South African farmers are expected to sow 2.8% fewer hectares of the food staple maize next season than forecast in October after the planting season was delayed by rains, a Reuters survey of analysts showed.
Processed meats units continue to take toll on Tiger Brands
22/11/2019 - 15:10
Food producer Tiger Brands, which is still reeling from the backlash of the listeriosis crisis, said the slow recovery in its value-added meats businesses ensured operating income fell by a fifth in its year to end-September.
The clever shift SA's economy can make: economist
13/11/2019 - 13:29
Finance minister Tito Mboweni’s medium-term budget gave a blunt presentation of the financial issues facing South Africa and it is clear that government has finally come to grips with reality, says Efficient Group economist Francois Stofberg.
Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.
South Africa is emerging as a new hub for Retail Forex Trading
13/11/2019 - 10:16
South Africa's financial market is said to be the most developed & organized in Africa led by big Banks like Standard Bank, ABSA, FNB, FirstRand, Nedbank & local Stock Exchange (JSE) which is the largest stock market in Africa with daily trading volume of R23.7 Billion.