The South African (SA) Rand strengthened in early trade on Monday ahead of the release ​of local manufacturing Purchasing Managers’ Index (PMI) and ‌vehicle sales data for July.

The Rand traded at 16.4650 against the Dollar, up 0.6% from its previous close.

The Absa PMI survey is expected to provide ⁠fresh insight into manufacturing conditions in Africa’s ​most industrialised economy.

SA manufacturing sentiment deteriorated in June ​as weaker demand weighed on new orders, although lower oil prices boosted confidence about future business conditions.

Investors will also focus ​on vehicle sales, which will offer a snapshot of consumer demand ‌for ⁠big-ticket items after sales rose 15.3% in June.

Nedbank economists forecast vehicle sales growth to moderate to 9.2% in July, primarily due to the high base ​reached last ​year and ⁠a less supportive economic backdrop.

“Even so, sales are expected to remain robust ​at 56.247 units, underpinned by the lagged ​effects ⁠of interest rate cuts and the availability of affordable imported models,” they said in a note.

SA’s ⁠benchmark ​2035 government bond was weaker ​in early deals, as the yield rose 2.5 basis points ​to 8.605%.

–Reuters–