SA seen dodging recession

GDP has changed from contraction in the first quarter to an expansion.

South Africa's economy probably avoided tipping into a recession in the second quarter, handing the country's new coalition government a much-needed base to build on over the rest of the year.

Stronger readings from manufacturing, retail and wholesale trade sales shows parts of the economy have turned positive that were a drag in the three months through March - when output shrank 0.1% - amid a clear improvement in national electricity supply.

That will aid growth, with analysts polled by Bloomberg predicting a 0.5% gain when second quarter data is published on 3 September, adding to evidence that the country has turned a corner since elections in May.

Another positive clue, annual consumer price inflation slowed to 4.6% in July from 5.1% in June.