US labour market trends weaken, SA’s GDP picks up marginally

Loading player...
The US August labour market report was mixed. It showed an improvement in the unemployment rate to 4.2% from 4.3% in July, but the number of jobs created was below the monthly average. Whether the US Fed will cut interest rates by 25 bps or 50 bps later this month to stimulate the economy is under debate. STANLIB believes a 25 bps cut is most likely, followed by a series of others.
In Q2 2024, SA’s GDP grew by 0.4% q/q, better than the zero rate of growth in Q1, but still very weak. Growth was driven by higher electricity production, financial services and retail spending post-election. While there is no sign of broad-based growth, looming interest rate cuts, the cash released from the two-pot retirement system and public-private partnerships may stimulate the economy next year.
Click here to listen to the podcast.
9 Sep 2024 English South Africa Investing · Business News

Other recent episodes

SA’s removal from the grey list could contribute to 2026 growth

In this podcast, STANLIB Chief Economist, Kevin Lings, discusses why the Financial Action Task Force decided to remove SA from the grey list today and how this development could contribute to economic growth in 2026. STANLIB is an authorised Financial Services Provider in terms of the FAIS Act and a…
24 Oct 4 min

No resolution to US government shutdown; SA’s retail sales slow

In this podcast, STANLIB’s Chief Economist, Kevin Lings, looks at the economic disruption as the US government shutdown enters its third week, with no resolution in sight. He also considers the slowdown in SA’s retail sales in August, which appears to be largely due to the tapering off of two-pot…
20 Oct 10 min

Trust your manager to navigate through volatile fixed income markets

In the latest episode of our The More You Know vodcast series, Sylvester Kobo, Deputy Head of Fixed Income at STANLIB Asset Management, counsels investors to “get comfortable with discomfort” for the foreseeable future and avoid focusing on short term ups and downs. He also discusses the factors that have…
16 Oct 18 min

Markets soften on US government shutdown, escalating trade war with China

In this podcast, STANLIB’s Chief Economist, Kevin Lings, considers the likely implications if the US government shutdown continues for an extended period. He also touches on export restrictions announced by China on certain rare earth minerals and the US response to threaten higher tariffs on China, which suggest the trade…
13 Oct 6 min

US government shutdown likely to drag on; SA collects more tax than expected

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses the reasons for and impacts of the US government shutdown, including on economic activity and business confidence. He suggests that, given current political tensions in the US, it is likely to drag on for a while. He also looks at SA’s…
6 Oct 13 min