Our reading into consumers was broadly negative in August. While the ABSA PMI gained 0.8 points in June, Business Confidence (SACCI) took a -1.3-point dive. Further declines were registered in vehicle sales with a -3.9% y-y decline in July after the -1.6% y/y decline in June. Nominal food and beverage sales were weak in June, growing 3.1% y/y, below the YTD average growth of 9.1% y/y. Petrol and diesel are expected to increase by 10c/litre and 25c/litre respectively in September. In July, CPI inflation fell to 4.0% while PPI inflation retreated to 4.9%.
The Rand closed the month of August at R15.19 to the US Dollar, weaker on a y/y and m/m basis respectively.
