Economic growth seen stagnant as confidence wanes

- | 4 months ago

“There’s more downside risks than there are upsides,” Mpho Tsebe, an economist at FirstRand Group’s Rand Merchant Bank, said by phone.

Higher fuel prices and the lack of tax relief in the budget will weigh on household consumption and companies will adopt a “wait-and-see approach” to investment ahead of the May 8 general election, she said. The return of rolling blackouts as the nation’s power utility struggles to supply enough electricity is a further drag on output.

The Purchasing Managers’ Index fell for a second straight month in February as so-called load-shedding weighed on business activity in the manufacturing industry.

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