US labour market data shows softening, while SA’s electricity generation stabilises
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A consistent message is coming through latest US labour market data releases: labour market conditions are softening as high interest rates are having an impact. Although the US added 206,000 jobs in June, more than expected, many are being generated in non-cyclical sectors like government, education and health care. The unemployment rate is now 4.1% and seems to be edging higher. We believe the US Federal Reserve may be able to consider cutting interest rates by 25 bps at its September FOMC meeting.
It has been more than 100 days since SA experienced load shedding. The Electricity Availability Factor (EAF) has held above 60% for over two months and although unplanned maintenance is still significant, it appears to be holding at a relatively low level. However, to grow the economy faster than 1-1.5% a year, SA needs more electricity capacity. Lack of sufficient power generation remains a key hindrance to the country’s growth ambitions. Click here to listen to the podcast.
It has been more than 100 days since SA experienced load shedding. The Electricity Availability Factor (EAF) has held above 60% for over two months and although unplanned maintenance is still significant, it appears to be holding at a relatively low level. However, to grow the economy faster than 1-1.5% a year, SA needs more electricity capacity. Lack of sufficient power generation remains a key hindrance to the country’s growth ambitions. Click here to listen to the podcast.