South African rand weakens ahead of manufacturing survey and car sales data

JOHANNESBURG: The South African rand weakened in early trade on Thursday ahead of the release of a local manufacturing purchasing managers’ index (PMI) and vehicle sales data for September. At 0709 GMT the rand traded at 16. 4875 against the dollar, down about 0. 3% from its previous ⁠close. An Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa’s largest economy. South African manufacturing sentiment deteriorated further in August as business activity slumped, signalling a weak start to the second half of the year. Vehicle ⁠sales data is due around 1200 GMT, giving a snapshot of consumer demand for big-ticket items. Nedbank economists said in a research note that ⁠they expect car sales growth to moderate from 11. 4% in August to 6. 7% in September. On the ⁠Johannesburg Stock Exchange, the Top-40 index was down 0. 5% in early trade. South Africa’s ⁠benchmark 2035 government bond also weakened, with the yield rising 3 basis points to 8. 85%.

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