During the election month, the news flow on indicators we track was net positive. Encouragingly the ABSA PMI rose to 47.2 points while business confidence (SACCI) gained 1.9 points to 93.7 points. Vehicle sales saw a mild improvement of 1.2% y/y in April. CPI inflation remained steady however PPI inflation rose another 30bps to 6.5%. Fuel is expected to decline by -5c/litre for petrol and increase by 19c/litre for diesel in June (net of the new Carbon Tax). The Rand closed the month of May weaker at R14.59 to the US Dollar.