JOHANNESBURG - South Africa's economy showed signs of recovery in July, with lower fuel prices helping to lift activity after two months of decline.
The PayInc Economic Index rose 0.3 percent in July, recovering some ground after declines in May and June.
The improvement came as petrol and diesel prices fell for the first time in months, providing relief to consumers and businesses.
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PayInc says lower fuel costs helped support economic activity, although ongoing uncertainty in the Middle East and elevated oil prices remain a risk.
The report also highlighted continued pressure in the labour market, with the unemployment rate rising to a four-year high of 33.6 percent in the second quarter.
Despite these problems, business activity remained stable, vehicle sales continued growing, and payment transactions reached a record high in July, pointing to pockets of resilience in the economy.