SA’s GDP declines in Q3 2024; US employment data remains strong
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In Q3 2024, SA’s GDP fell by a surprising 0.3% quarter on quarter, while the market expected a small increase. This mainly reflected a massive decline in agricultural production, which fell 28.8% q/q, largely reflecting a four million tonne drop in the maize crop (which was actually an annual, not quarterly decline). This will make it difficult for SA to achieve a 1% GDP growth rate for 2024.
Various US labour market reports were released last week, showing 227 000 jobs were added in November, with more job growth in the services sector than in industrial activity. Also, the previous two months’ data was revised upwards. The unemployment rate drifted up to 4.2% from 4.1%. Given this level of vibrant overall economic activity, the Federal Reserve will have to adopt a cautious approach to further interest rate cuts in 2025.
Click here to listen to the podcast.
Various US labour market reports were released last week, showing 227 000 jobs were added in November, with more job growth in the services sector than in industrial activity. Also, the previous two months’ data was revised upwards. The unemployment rate drifted up to 4.2% from 4.1%. Given this level of vibrant overall economic activity, the Federal Reserve will have to adopt a cautious approach to further interest rate cuts in 2025.
Click here to listen to the podcast.
