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The Citizen
9 hours ago
- Business
- The Citizen
Manufacturing PMI falls to lowest level since April 2020 — bad news for GDP
The outlook for economic growth in South Africa is not great, and the new PMI and GDP data is not expected to be great either. Manufacturing PMI fell to its lowest level since the pandemic in May, signalling that the manufacturing sector remains under pressure after a poor start to 2025. This is not good news for the GDP statistics for the first quarter that will be announced on Tuesday, 3 June. The Absa Purchasing Managers' Index (PMI) is an economic activity index based on a survey conducted by the Bureau for Economic Research (BER) and sponsored by Absa. According to the BER, the seasonally adjusted PMI decreased by 1.6 points to 43.1 in May 2025 from 44.7 in April and 48.7 in March. Jee-A van der Linde, senior economist at Oxford Economics Africa, says the headline PMI remained in contractionary territory for a seventh consecutive month. 'This suggests that the manufacturing sector continued to suffer in May, despite some flickers of activity and demand improvement, albeit at extremely low levels. However, a decline in the supplier deliveries index pushed the headline PMI lower.' ALSO READ: Manufacturing PMI for April shows deteriorating SA economy Modest increase in business activity and sales orders The business activity and new sales orders indices rose modestly in May, likely driven by an uptick in domestic demand as export sales continued to deteriorate rapidly, he says. The survey findings were inconclusive on whether the decline in the inverted supplier deliveries index was due to easing logistical constraints or lower demand. Meanwhile, the employment index continued to decline, remaining in contractionary territory for 14 consecutive months. The index tracking expected business conditions in six months' time increased sharply to its highest level since the end of 2024. Van der Linde says the survey findings suggest that sentiment improved after global tariffs were suspended and businesses were hopeful that local political disagreements on policy within the government would be resolved. ALSO READ: PMI down slightly with concerns about global trade uncertainty How manufacturing slipped further in May This chart shows how manufacturing PMI slipped further in May, pressured by soft local and international demand: Source: BER ALSO READ: This is where we would be if SA sustained an economic growth rate of 4.5% PMI at lowest level since April 2020 Van der Linde says the headline PMI has fallen to its lowest level since April 2020, when it was 30.9, emphasising just how weak demand is for South African manufactured goods. 'The employment index has remained in contractionary territory for the past 14 months, as manufacturers continue to scale down production due to stagnant demand.' He says the manufacturing sector is expected to weigh on first-quarter real GDP growth, and that looks likely to be the case in the second quarter as well. 'First-quarter economic data releases have been weak, pointing to 0% growth in the first quarter of 2025 compared to the fourth quarter of 2024. A quarterly contraction cannot be ruled out. Our below-consensus real GDP growth forecast for 2025 remains at 1.0%.' This table shows the subcomponents of the Manufacturing PMI fared over the past three months: Source: BER
The Citizen
3 days ago
- Business
- The Citizen
Weekly economic wrap: Rand strongest since December, but falling again
Although the rand kept its head up all week and strengthened even more on the back of the repo rate cut, it lost traction on Friday afternoon. The biggest economic news of the week was the mostly unexpected cut in the repo rate of 25 basis points, while the rand kept its momentum and reached its strongest level since December. Gold, on the other hand, was not so lucky. Lisette IJssel de Schepper, chief economist at the Bureau for Economic Research, says the Monetary Policy Committee (MPC) of the South African Reserve Bank (Sarb) decided to cut the repo rate by 25 basis points to 7.25%, which means that the prime interest rate is now 10.75%. 'The dovish tilt, with all six members voting for a cut and one member even preferring a 50 basis points cut, was surprising, but welcome. In addition, the clear signalling around moving to a 3% inflation target is positive and removes uncertainty.' Bianca Botes, director at Citadel Global, points out that the rand strengthened to its best level since December, helped by a weaker dollar and the Sarb's repo rate cut, which aims to support the local economy and as inflation remains low. Busisiwe Nkonki and Isaac Matshego, economists at the Nedbank Group Economic Unit, also point out that the rand gained further ground this week. 'The Sarb's interest rate cut and the announcement of the imminent lowering of the inflation target boosted sentiment, lifting the local unit to R17.80/$ late Thursday, and on Friday morning it was trading around R17.83/$.' Unfortunately, the good news did not last, and the rand traded at R18.04 on Friday afternoon. ALSO READ: Reserve Bank cuts repo rate thanks to lower inflation, stronger rand Decrease in prices of oil and gold Oil prices dropped for the second week in a row, with Brent Crude trading near $63/barrel, Botes says. 'This decline is driven by investors remaining uncertain about what will happen with US tariffs, as the legal back-and-forth is making the market more unpredictable. 'Traders are also watching the upcoming expanded Organization of the Petroleum Exporting Countries (OPEC+) meeting, where major oil-producing countries are expected to agree on increasing oil production in July.' Botes says there is extra tension because Kazakhstan is producing more oil than it is supposed to, which could lead to even more supply than planned. On the demand side, recent US economic data shows the economy shrank slightly in the first quarter, raising worries that people and businesses might use less fuel.' She says gold prices also slipped to around $3,290/ounce and are heading for a weekly loss, as investors wait for the PCE index, which could affect future interest rate decisions. Investors also remain cautious as they wait for more clarity on US inflation and interest rates. ALSO READ: Producer Price Index remains unchanged, but an increase is coming Producer price inflation remains muted Lebohang Namo, economist at the BER, says producer price inflation (PPI) for final manufactured goods, remained unchanged at 0.5% in April. 'Like consumer inflation last week, this was above consensus expectations following a string of downward surprises.' Mamello Matikinca-Ngwenya, Siphamandla Mkhwanazi, Thanda Sithole and Koketso Mano, economists at FNB, say continued deflation in fuel, paper products and transport equipment helped keep overall producer inflation contained in April. Nkonki and Matshego, economists at the Nedbank Group Economic Unit, say April's producer price inflation provided more evidence of subdued price pressures. Producer inflation held steady at 0.5%, matching our forecast and exceeding market expectations of 0%. 'Deepening fuel price deflation offset higher food prices. Elsewhere, price pressures remained relatively subdued. Food, beverages and tobacco inflation accelerated from 4.1% to 4.7%, while deflation in coke, petroleum, chemicals, rubber, and plastics deepened from 4.1% to 5.5%. Producer inflation will likely rise moderately off a low base in the months ahead.' ALSO READ: Salaries decreased by 2% in April, but higher than a year ago Private sector credit extension increased in April Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say Private Sector Credit Extension (PSCE) growth increased to 4.6% in April, up from 3.4% in March, largely driven by an acceleration in corporate credit growth, which increased to 6.0% from 3.9%. Household credit growth was 3.0%, marginally higher than the 2.9% recorded in March. Within corporate credit, growth in general loans and advances rose to 7.4% from 4.3%, overdraft growth climbed to 12.6% from 10.3%, and mortgage advances grew by 6.2%, slightly up from 6.1% in the previous month. Instalment sales credit growth remained stable and above inflation at 5.0%, compared to 5.1% in prior months, while credit card growth declined sharply to 0.6% from 2.5%. In the household segment, general loans and advances and overdrafts remained in contractionary territory, while mortgage advance growth was stable at 2.3%, unchanged from the prior month. Growth in other household credit categories remained above inflation, with instalment sales credit at 6.2% and credit cards at 8.5%. Nkonki and Matshego say the growth in broad money supply improved slightly from 5.8% in March to 6.1% in April, exceeding their expectations of 5.9%. 'The boost in PSCE came from faster growth in loans and advances and a less severe decline in bills and investments. 'The most significant momentum came from companies, where advances jumped from 5.5% to 7.5%, amplified by last year's low base. Even so, company overdrafts and general loans accelerated, while commercial mortgages and instalment sales and leasing finances held relatively steady.' They also note that the slow recovery in household loans continued, rising slightly from 2.9% to 3%. 'The uptick came mainly from a rebound in credit card usage, while vehicle finance and home loans were unchanged. We expect the recovery in credit demand to gain moderate upward traction in the months ahead, supported by easier financial conditions and firmer domestic demand.'
The Citizen
23-05-2025
- Business
- The Citizen
Weekly economic wrap: Rand stable around Budget 3.0 and US visit
The US president's attempt at a showdown in the White House did not have much of an impact on the rand, while gold shines again. It was a busy week for South Africa on the economic front, with the finance minister at last delivering a budget that all parties in the government of national unity are happy with, followed shortly after by President Cyril Ramaphosa's visit to President Donald Trump at the White House. Through all this, the rand kept its composure and remained stable. Lisette Ijssel de Schepper, chief economist at the Bureau for Economic Research (BER), says it is rare that the presentation of the national budget would not be the week's main story. 'This week, the focus was on the meeting between Ramaphosa and Trump. It was a high-stakes meeting because so many things could have gone wrong. 'It is, of course, remarkable that the White House blasting 'Kill the Boer' footage with all members of the US and SA delegations present is not the worst thing that could have happened. But the meeting ended on cordial terms, and the South African delegation sounded positive after the closed-door session following the media event.' ALSO READ: Budget 3.0 was not a chainsaw budget, economists say Budget 3.0's sobering reality check She says Budget 3.0 was a sobering reality check on South Africa's macro and fiscal position, as National Treasury's growth and revenue outlook were revised down in line with the deterioration in global and domestic economic conditions. 'Treasury was forced to slash the massive shopping list it presented in February into something far more manageable. Net new expenditure for 2025/2026 has been halved from R142 billion in March to R74.4 billion. 'In addition, Treasury warned that it will impose R20 billion in additional tax measures in 2026 unless it is able to achieve the requisite savings through the expenditure review process and/or Sars is able to turn its R2 billion additional allocation for 2025/2026 into R20 billion of additional revenue by February next year.' De Schepper says that to add to the fiscal risks, Transport Minister Barbara Creecy approved a R51 billion guarantee facility for Transnet to support capital investment, implement required reforms, and ensure that it can meet its debt obligations. This comes on top of the R47 billion support facility granted to Transnet at the end of 2023. ALSO READ: Bitcoin hits record high, surpasses R2 million Rand stays stable in all the noise around US visit and Budget 3.0 De Schepper points out that the rand exchange rate remained remarkably strong throughout the week, although it was against a weak US dollar and was still trading below R18/$ today. Bianca Botes, director at Citadel Global, also noted the rand's steady hand on the same day as the diplomatic fireworks and Budget 3.0. 'Despite the significance of both the budget and the US meeting, the rand remained remarkably stable. Investors appeared reassured by government's commitment to fiscal discipline and largely ignored the diplomatic drama taking place in Washington, DC. The buckling greenback, of course, also provided the rand with a supportive hand. 'The rand held firm near a five-month high against the dollar, benefitting from a depressed greenback as markets reacted positively to the prospect of new trade talks with the US and ongoing speculation about changes to South Africa's inflation-targeting regime, despite a weaker economic growth outlook and slightly higher inflation. The rand has also strengthened against the euro and the pound.' ALSO READ: Godongwana cuts government spending to offset VAT shortfall Gold gained, while oil jumped Botes points out that gold prices hovered near $3 300 per ounce, recovering from earlier losses and are set for a weekly gain. 'Investors are turning to gold yet again as a safe haven asset amid worries about US fiscal policy, especially after a major tax-and-spending bill was passed and Moody's downgraded the US credit rating. 'Gold is an attractive asset for investors because it is a good diversifier of portfolios as it protects against inflation and its value is resilient during volatile and uncertain economic times. A weaker US dollar has further supported gold, making it more attractive to buyers worldwide. Ongoing geopolitical tensions have added to gold's appeal as a refuge in uncertain times.' She says Brent Crude oil prices dropped toward $64/barrel, heading for their first weekly decline in three weeks, mainly due to expectations that the expanded Organisation of the Petroleum Exporting Countries, OPEC+, which is a coalition of major oil-producing nations, might approve another increase in oil production at their upcoming meeting. 'Geopolitical risks are also influencing energy markets. Reports suggest Israel is preparing for possible strikes on Iranian nuclear facilities if US-Iran nuclear talks fail, raising fears of regional supply disruptions. However, these concerns have so far been outweighed by the prospect of increased oil supply and rising stockpiles.' De Schepper says the oil price jumped a bit midweek on reports that Israel was preparing to strike Iran's nuclear facilities. 'However, reports that OPEC+ could announce another sizeable increase in oil output following their meeting on 1 June pushed futures lower. 'A slightly lower oil price and a relatively stronger rand mean that local motorists should be somewhat shielded from Budget 3.0's fuel levy increase that will kick in next month.' ALSO READ: Inflation for April only 2.8%: Is a repo rate cut coming next week? Inflation edged up slightly in April due to higher food prices Headline consumer price inflation increased marginally to 2.8% in April from 2.7% in March. Tshepiso Maroga, economist at the BER, says after a string of downward surprises, this was the first overshoot relative to the consensus forecast, but in line with the BER's forecast. Isaac Matshego and Busisiwe Nkonki, economists at the Nedbank Group Economic Unit, say the slight increase in inflation exceeded their and the market's expectations. 'This increase was primarily driven by higher food prices, which continued their upward trend from a low base, along with contributions from housing and utilities. These factors overshadowed steeper declines in fuel prices.' Mamello Matikinca-Ngwenya, Siphamandla Mkhwanazi, Thanda Sithole and Koketso Mano, economists at FNB, say although core inflation remains benign, they still foresee muted inflation over the remainder of the year. 'Despite a rising trend into the second half of 2025, inflation should remain below the target midpoint, supported by soft oil prices, a recovery in the rand's value and weak economic activity. Headline inflation should average around 3.5% this year, down from 4.4% last year.' ALSO READ: Retailer confidence declined. Here's why Retail sales slowed again in March Consumer spending slowed sharply in the first quarter of 2025, with retail sales increasing by only 1.5% in March, down from 4.1% in February (revised up from 3.9%). On a monthly basis, sales volumes dipped by 0.2% in March, following a steeper 1.2% drop in February. Overall, retail activity grew just 0.1% in the first quarter compared to the fourth quarter of 2024, a significant slowdown from the 2.0% growth in the final quarter of 2024. Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say this suggests that household spending is losing momentum, which could weigh on broader economic growth. 'Despite the March slowdown, retail sales for the first quarter were up 4.1% compared to a year ago, the strongest start to a year since 2018. 'This reflects improved household finances, supported by lower inflation and reduced borrowing costs. However, the sharp deceleration in March points to growing consumer caution, likely due to fading support from once-off large-scale two-pot pension withdrawals, as well as rising uncertainty both at home and abroad. 'Looking ahead, consumer spending is still expected to drive growth in 2025, but at a slower pace than previously forecast. The outlook is clouded by global trade tensions, local political uncertainty and weaker local growth, which may weigh on employment.' Matshego and Nkonki point out that the key drivers of the March increase were pharmaceuticals and medical goods, cosmetics and toiletries and textiles, clothing, footwear and leather goods. 'Looking ahead, retail sales are expected to strengthen in the coming quarters. 'This improvement will be supported by rising real incomes, subdued inflation, continued withdrawals of contractual savings and lower debt servicing costs compared to a year ago.'
The Citizen
16-05-2025
- Business
- The Citizen
Weekly economic wrap: Rand strengthens, gold on back foot
Economic indicators also painted a bleak picture for jobs and mining production, with the unemployment rate rising to 32.9%. While economic indicators did not bring good news about jobs and mining production this week, the rand strengthened, although gold lost some of its shine. All eyes are now on Finance Minster Enoch Godongwana, who will try for the third time to deliver Budget 2025 on Wednesday, while the inflation rate for April will be announced on the same day and president Cyril Ramaphosa will visit the White House to talk US president Donald Trump out of punishing South Africa for the 'ugly things' happening to Afrikaners in the country. Tracey-Lee Solomon, economist at the Bureau for Economic Research (BER), says the rand appreciated 0.6% against the dollar and posted stronger gains of 1.4% against the euro and 0.8% against the pound, closing Thursday at its strongest level against the dollar so far this year. The rand dipped even lower to R18/$ on Friday morning, and ended the day trading at R18.0/$. ALSO READ: Economic activity slows in April as economy struggles Bianca Botes, director at Citadel Global, says the stronger rand was buoyed by a weaker greenback and anticipation of a key meeting between Ramaphosa and Trump, as well as news that a new inflation target will be announced soon. Isaac Matshego and Busisiwe Nkonki, economists at the Nedbank Group Economic Unit, say the rand was supported by a recovery in global risk sentiment sparked by the tariff compromise between the US and China following trade talks in Geneva last weekend. Gold and oil moved in different directions thanks to trade optimism But as the rand scores, gold suffers. Solomon says the shift toward a risk-on sentiment was evident in the retreat of safe-haven assets. The gold price dropped 4.4% week-on-week, hitting its lowest level since early April on Wednesday. She points out that oil prices climbed on the back of trade optimism, renewed sanctions on Iranian crude and OPEC+'s restraint on production increases in April despite higher quotas. Brent crude rose by 2.7% for the week but late-week hopes for a US-Iran nuclear deal lowered prices. Botes says the gold price fell to around $3,220/ounce early Friday morning, heading for a weekly loss of more than 3%. 'This decline was driven by a reduction in global trade tensions, which lessened the metal's appeal as a safe investment. Recent agreements to ease tariffs and the calming of certain geopolitical risks contributed to this shift, although some international negotiations showed little movement.' ALSO READ: Increased unemployment rate red flag for weak economic growth She says crude oil prices hovered near $61/barrel. 'Optimism about improved trade relations supported oil demand, but gains were limited by the possibility of increased supply from certain producers and a surprise increase in inventories. Forecasts for higher global oil output, as some major exporters increased production, also added further pressure on prices. Unemployment increased again in the first quarter Unemployment increased again in the first quarter, reversing the gains at the end of 2024. According to Statistics SA's Quarterly Labour Force Survey, the unemployment rate increased by 1 percentage point to 32.9% in the first quarter of 2025, reversing the 1% percentage point improvement recorded in the previous quarter. Damian Maart, economist at the BER, says the increase in unemployment stems from the entry of recent school leavers into the labour market and expected seasonal job losses after the holiday period. 'While the first-quarter uptick in unemployment is concerning, it aligns with historical trends and does not appear to be an outlier when compared with past first-quarter data.' Matshego and Nkonki say demand conditions have not improved sufficiently to utilise spare capacity and drive companies to increase hiring or expand their operations, while seasonal factors also played a role, especially in the domestic trade sector, which shed 194 000 jobs. ALSO READ: Salary survey shows gap between increases and inflation narrowing Not unusual for unemployment to increase in first quarter They also say that employment usually declines in the first quarter after a seasonal and temporary surge over the holiday season. 'Besides domestic trade, construction and private households also reduced their workforce, while transport, finance and utilities created more jobs. Despite the disappointing outcome, employment still increased by 43 000 compared to the same period last year.' Mamello Matikinca-Ngwenya, Siphamandla Mkhwanazi, Thanda Sithole and Koketso Mano, economists at FNB, say the fact that the absorption rate decreased by 0.8% to 40.3% suggests a moderate deterioration in the economy's ability to create jobs. 'At this rate, a significant proportion of the working-age population is still left out of the economy, emphasising the need for faster and labour-intensive growth. The near-term cyclical outlook for the labour market is clouded by elevated global uncertainty, including the impact of US trade tariffs. However, continued structural reforms should, over the medium term, support employment creation.' Mining production decreases again despite less load shedding According to Statistics SA, mining production outperformed expectations in March, showing a notable improvement and declining by 'just' 2.8% after a 9.8% contraction in February, Maart says. Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say the data confirms that the mining sector dragged GDP growth during the first three months of 2025, with output contracting by 4.5% compared to the fourth quarter of 2024, worse than the 0.7% contraction recorded in the fourth quarter. 'This, together with the quarterly weakness recorded in the manufacturing and electricity sectors, poses a downside risk to the GDP growth estimate for the first quarter. The remaining high-frequency data to be published over the next two weeks will give a clearer picture of how the economy performed. ALSO READ: Mining production disappoints again 'At this stage, we pencil in 0.2% quarterly GDP growth for the first quarter, which is lower than the 0.6% quarterly growth recorded in the fourth quarter.' Matshego and Nkonki say that generally inefficient domestic logistics, subdued global demand and stagnant commodity prices continued to weigh on the sector's performance.
The Citizen
09-05-2025
- Business
- The Citizen
Weekly economic wrap: rand had a remarkable week but gold slips
The rand showed its resilience, coming back from trading close to R20/$ last week to trading closer to R19/$ today. It was a quiet week on the local economic front, but the rand had a remarkable week, although most of the factors that supported the rand made the gold price slip. Lisette Ijssel de Schepper, chief economist at the Bureau for Economic Research (BER), says the rand exchange rate had a remarkable week, trading about 2% stronger against the dollar, euro and pound by Thursday compared to last week. 'While it is always difficult to pinpoint the exact driver, it is typical of the rand to increase sharply (it was trading near R20/$ this time last month) and then recover at a rapid pace too. A sustained streak of capital inflows in South Africa's equity market helped, with non-residents being net buyers of South African shares for the longest streak since August 2022.' However, De Schepper notes that despite inflows, the JSE ALSI closed 0.8% lower compared to a week ago. Bianca Botes, director at Citadel Global, says emerging market currencies, including the rand, also beneffited from the improved global outlook. 'The rand approached one-month highs, driven by improved global sentiment and risk appetite, while supported by positive domestic developments such as Eskom's assurances on power supply and new government economic initiatives.' 'The rand is trading 1.15% stronger against the greenback for the week and is up 1.86% against the euro and 1.74% against the pound.' The rand was trading at R18.26 on Friday afternoon. ALSO READ: SA's economic growth outlook growing increasingly dim Gold slips due to trade optimism, while oil advances Meanwhile, gold prices slipped for a third straight session overnight, dropping to around $3,290/ounce as risk appetite improved on the back of trade optimism, Botes says. 'The prospect of easing US-China tensions and the new US-UK agreement reduced demand for safe-haven assets. The Fed's decision to keep interest rates steady, coupled with warnings about inflation and unemployment risks, reinforced a cautious policy outlook. Even with recent declines, gold was still set for a weekly gain, reflecting ongoing investor caution amid a complex global backdrop.' Botes points out that Brent crude prices edged higher on Friday, approaching $63/barrel and building on the previous day's momentum. 'The market found support from renewed optimism surrounding upcoming US-China trade negotiations, with investors hopeful that progress could be made between the world's top two oil consumers.' 'The announcement of a US-UK trade deal further lifted sentiment, while a sharper-than-expected decline in US crude inventories earlier in the week provided an additional boost. Despite these positives, oil's advance was tempered by concerns over the expanded Organisation of the Petroleum Exporting Countries, OPEC+'s plans to increase output, ongoing uncertainty about the US economic outlook, and speculation that a US-Iran nuclear deal could bring more supply to the global market.' ALSO READ: SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor The sad story of manufacturing production According to Statistics SA, factory output declined by 0.8%, which was better than the 3.2% drop last month, but it was the third consecutive decline and lower than the 0.8% growth consensus forecast. Nkosiphindile Shange, economist at the BER, points out that the biggest drag came from a 2.5% drop in petrochemicals (-0.5%) and the electrical machinery subsector (-12.2%). 'Output fell by 2.3% in the first quarter as seasonally adjusted monthly production came in below expectations and declined by 2.2% in March 2025 compared to an expected 0.4% growth. The drop in April's Absa PMI, released last Friday, does not bode well for a strong start to the second quarter.' ALSO READ: Budget 3.0 should not increase SA's debt, rather cut expenditure — BLSA S&P Global South Africa PMI improves after four months of contraction The S&P Global SA PMI increased from 48.3 points in March to 50 points in April as output and new orders ticked up for the first time in five months. Shange says robust sales in the services sector supported the increase in activity, while there were modest upturns in the trading and construction sectors. 'Manufacturing declined in line with the Absa PMI tracking the factory sector specifically, and due to currency weakness, input price pressures increased.' Isaac Matshego and Busisiwe Nkonki, economists at the Nedbank Group Economic Unit, agree that the manufacturing sector continued to struggle in March. 'The rate of decline in manufacturing output at least moderated from a sharp 3.2% in February to 0.8% in March.' 'The weakness was widespread, but the sharpest declines occurred in petroleum, chemicals, rubber and plastics as well as electrical equipment. Over the quarter, the sector contracted by 2.3%, a sharper decline than in the final quarter of 2024 (-0.9%).' 'This means that manufacturing will again be a drag on GDP. Despite less severe load shedding and marginal gains at the ports, subdued domestic and global demand has led to ample spare capacity and weak commodity prices. These circumstances, within the context of high operating costs, have weighed on the industry's output.' ALSO READ: Toyota Hilux and Suzuki Swift lead new vehicle sales in April Increase in new vehicle sales New vehicle sales increased by 11.9% in April, after rising by 13.3% in March. Passenger vehicles increased by 16.9% to 30 101 units. Car rental sales accounted for 8.9% of passenger vehicle sales. Total commercial vehicles rose by 1.3% after 13 consecutive months of contraction. Sales of light, medium and heavy commercial vehicles all increased, with only extra-heavy vehicles and buses contracting. Total exports fell by 6.6% or 2 266 units. Passenger vehicle sales fell by a sharp 32.9% after growing by 7.1% in March. Commercial vehicle exports also declined by a smaller margin of 1.4%. According to naamsa, the poor export performance was due to the closure of a major Original Equipment Manufacturer (OEM) for most of the month. The OEM shut down to upgrade the facility to manufacture a new mode, Matshego and Nkonki say.
