The lowering of the interest rate by 25 basis points as well as relief from lower fuel prices during July offered some reprieve for financially strained consumers. The ABSA Purchasing Managers’ Index measured 52,1 index points
in July 2019, the first reading above the neutral 50-point mark since December 2018, signalling an expansion in activity. The increase in all commercial vehicle segments therefore bodes well for the remainder of the year.
However, in a low growth environment other structural reforms that deal with underlying issues in the economy need to complement the lowering in the interest rate for sustained improvement in business and consumer confidence
going forward. The turnaround anticipated for the second half of the year has not realised in the new vehicle market yet. The export performance, however, remains strong and industry vehicle production levels would continue
to benefit from strong vehicle export sales.