By Claire Badenhorst
- South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) recovered even more in September from August – rising from 57.3 points to 58.3 points. The index, which measures South Africa’s manufacturing activity, increased well above the 50-point mark which separates expansion from contraction. The further easing of lockdown restrictions is seen as the main driver behind increased business activity and new sales. South Africa’s strict lockdown at the end of March flattened certain businesses and economic output recorded its largest contraction ever in the second quarter. In a press statement, Absa said, “the employment index remains the main drag on the PMI, but a further increase in the index suggests that the pace of job losses has slowed.”
- Long time chairman Christo Wiese will retire from Shoprite in November after almost 30 years at the helm. The grocery chain has appointed Absa Group chairwoman Wendy Lucas-Bull as chair designate while Wiese remains on the board as a non-executive director. According to Reuters, the board felt that the next chairperson should be independent – a view supported by Wiese. While Lucas-Bull has extensive banking and sector experience, she has also served as a chairperson and non-executive director on numerous company boards across multiple industries, in both the private and public sector.
- The rand was at its best level in a week on Wednesday as the US dollar felt the full effects of a cringeworthy presidential debate. The gains came as New York trade opened and investors digested the first debate between President Donald Trump and rival Joe Biden. The rand continued to perform well through Thursday, reaching R16.68 at 16:00 as signs of progress in talks for fresh US stimulus measures bolstered investors’ risk appetite. South Africa’s trade surplus also increased in August, with the country exporting R38.9bn more than it imported.
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