3rd Quarter Report (September) Limpopo Investment Monitor increased in the long term and contracted in the short term.
Investment has for the past three months declined partly due to the weak condition of South Africa’s economy. Factors include GDP being revised down; a downgrade in the credit ratings, a twin deficit, back to back strikes and the latest which is Eskom’s load shedding are surely affecting the investment climate.
The Limpopo investment monitor, as compiled by Economist dotcoza, increased by 3.5% year-on-year after a 2.3% increase in August on a year ago basis.
However the Fixed Investment Index declined -2.8% Quarter-on-quarter, the first decline since January 2014 on a quarter on quarter basis. Limpopo had seen very strong buildings completed data for much of the last six months but the strong upward trend fell back exposing the lack of fixed investment in other sectors.