JOHANNESBURG – South Africa’s economy is showing signs of slowing down.
The latest PayInc Economic Index fell 0.9 percent in June. It marks a second consecutive monthly decline and its lowest level since November last year.
The Index tracks the real value of electronic payments and cash transactions to gauge economic activity.
Economists say elevated fuel prices, uncertainty and weaker confidence are causing households and businesses to hold back on spending and investment.
Manufacturing sector weakness and softer domestic demand suggest the economy remains on fragile footing heading into the second half of the year.
There were some bright spots though. Vehicle sales remained strong and digital payments continued to grow.
