The week starts off with the SA Reserve Bank data on money supply, which will show whether the jump in consumer confidence to a record high in the first quarter has resulted in an increased appetite for credit. The return of new vehicle sales to positive year-on-year changes in March after three consecutive months of declines seem to indicate that consumers are willing to take on more debt.
Broad M3 money supply growth rose to 6.89% year-on-year in February from 5.83% in January and 6.42% in December, while narrow money supply growth eased to 5.69% year-on-year from 7.11% and 6.83%.
Economic activity seems to be fuelled more by cash than credit as total loans and advances year-on-year change dipped to the lowest since 2009. It was 3.83% in January from 5.18% in December, but then recovered to 4.4% in February and a move above 5% is expected for March.
The next major data point is foreign trade from the SA Revenue Service, which will be released today. On the same day, the Treasury will release the detailed government spending and income data for the year ended March 2018.
- BUSINESS REPORT ONLINE