In March South Africa’s economy received a vote of confidence from the IMF which increased its GDP forecast for the country to 1.5% in 2018. Vehicle sales benefitted from consumers buying ahead of the April VAT increase with strong m/m sales growth. The CPI and PPI are both in their third month of y/y moderation with inflation reducing by a respective 20bps and 50bps in March. Consumer confidence (as reported by BER) took an unprecedented positive turn in 1Q18 following perennial negative outcomes spanning three years. Disappointing news flow came in the form of PMI and Business Confidence. After showing promise in February, PMI fell back below the 50-point neutral mark while Business Confidence fell further in March shedding 1.3 points. Motorists will pay 49c/litre more for petrol and 59c/litre more for diesel in May. The rand experienced some weakness in April closing the month trading at R12.31/USD.
