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Absa PMI plunges to a 14-month low but is expected to rebound

Absa PMI plunges to a 14-month low but is expected to rebound
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Private-sector credit remains constricted

Private-sector credit remains constricted Share GROWTH in private-sector loans remained in contractionary territory for the fourth consecutive month in June as corporates reduced taking credit on Covid-19 induced activity. Data from the SA Reserve Bank (Sarb) yesterday showed private sector credit fell by 0.5 percent year-on-year in June, following a 0.42 percent decline in May. This decline in private sector credit extension was worse than expected as it missed the market consensus of a 0.4 percent gain. The Sarb said the decline was primarily due to corporate credit, which has been subdued, recording no monthly growth for the third consecutive month in June.

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