JOHANNESBURG – Retail sales ticked up in June, signalling that the economy evaded a recession in the second quarter following the first three months’ shock 3.2 percent plunge in gross domestic product .
Capital Economics economist John Ashbourne said the figures added to the growing evidence that the economy returned to growth in the second quarter. “The return to growth increases the risk that policymakers will leave their key interest rate on hold at 6.50 percent next month, rather than – as we expect – cut to 6.25 percent. They may also be spooked by the rand’s recent weakness.”
In the first quarter, retail sales underwhelmed, as did the manufacturing, mining and agriculture sectors.
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