SA economy will take time to find its feet: Moody's

JOHANNESBURG - Ratings agency Moody’s says the pace of South Africa’s fiscal consolidation will be slower than government is hoping.

The country is struggling through weaker-than-expected economic growth.

In a report published on Wednesday, Moody's also flags a rising public sector wage bill, amongst the obstacles to government achieving its fiscal targets. 

Earlier on Wednesday, Reserve Bank Governor Lesetja Kganyago warned Parliament’s finance committee that recovery in economic activity is expected to be "weak and choppy".

The South African Chamber of Commerce and Industry (Sacci) revealed on Tuesday that the country’s trade conditions deteriorated further in July.

Sacci's trade expectations index for the coming six months has dropped from 49 to 45 points.

Recent research shows business is worried about the quality of job applicants, as well as violent and disruptive labour action.

Retail sales for June also grew at a slower rate than expected.

Retail trade figures were up by 0,7 percent.

The highest contributor to the growth came from household furniture, which was up 11,5 percent.

Pharmaceuticals, medical goods, cosmetics and toiletries came in 5,3 percent higher.