{"id":771098,"date":"2024-05-08T13:30:00","date_gmt":"2024-05-08T11:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=771098"},"modified":"2024-05-08T13:28:38","modified_gmt":"2024-05-08T11:28:38","slug":"a-blip-of-positivity-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/771098\/a-blip-of-positivity-for-south-africa\/","title":{"rendered":"A ‘blip of positivity’ for South Africa"},"content":{"rendered":"\n

South Africa’s economy has seen a period of strong performance, but there are still major challenges facing the country, such as the upcoming election. <\/p>\n\n\n\n

The BankservAfrica Economic Transactions Index (BETI), which measures all interbank economic activity processed by BankservAfrica, jumped in April to its highest level in eight months.  <\/p>\n\n\n\n

\u201cReaching an index level of 134.2 in April, the BETI has almost reached last August\u2019s level and improved by 0.6% on a monthly basis,\u201d said Shergeran Naidoo, BankservAfrica\u2019s Head of Stakeholder Engagements. <\/p>\n\n\n\n

Since the end of March, load shedding has been suspended, which has had a positive impact on economic activity.<\/p>\n\n\n\n

Spending in anticipation of the upcoming elections could have also played a role, with economic activity for political party campaigns and the IEC\u2019s preparation activities likely to be seen in additional retail spending. <\/p>\n\n\n

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A breakdown of the BETU around the election data shows that economic activity picked up the month before an election in 6 of the 9 elections under review. <\/p>\n\n\n\n

Moreover, the BETI increased in 7 of the 8 cases of the month of the election itself (2024 not included). <\/p>\n\n\n

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\u201cWhile other developments in the economy are also reflected in the performance of the BETI, election-related spending could make a meaningful impact on the BETI in the period around election dates,\u201d said Elize Kruger, Independent Economist.<\/p>\n\n\n\n

Other nowcast indicators also jumped in April, with the S&P Global South Africa Purchasing Managers\u2019 Index (PMI), which measures the operating conditions of the private sector, increasing to 50.3 in April, moving it into positive territory. <\/p>\n\n\n\n

The ABSA PMI also jumped to 54 index points due to improved business activity. <\/p>\n\n\n\n

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Bright spark for South Africa’s economy<\/a><\/blockquote>