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Johannesburg - BankservAfrica's Economic Transaction Index (BETI) showed encouraging signs of the economy clawing back in February after more than a year of stagnation, the electronic payment transaction company said on Thursday.
But extra holidays, lower export prices, and work stoppages in March put the brakes on this recovery momentum, said BankservAfrica regulated products CEO Brad Gillis in a statement.
"Just when a confirmation of economic recovery was most needed, South Africans and their economy went on holiday," he said.
"Overall, the BETI data reflects an economy with hesitant growth. Perhaps the recovery is not as strong as we would have liked it to be, but the facts do suggest that a recovery is still present."
Chief economist for economists.co.za Mike Schussler agreed, saying the continuation of wildcat strikes might still have an impact on overall business sentiment and was delaying improvements in the economy.
"Commodity price declines towards the latter half of March also made it difficult to confirm the positive trend over the last few months," Schussler said.
The earlier start to the Easter holiday resulted in declining car sales and fewer full productive working days as many people went on holiday from March 21.
"Particularly disappointing was the BETI quarterly growth which had picked up speed for four months in a row before the March 2013 holiday shift," said Schussler.
"On this evidence one has to say that we still need another two months of stronger growth to confirm a stronger GDP growth trend from the BETI." He said a stronger showing in the BETI and GDP could be expected in the second quarter.
"At this stage, however, the jury is still out on the confirmation of the South African economic recovery - even though we remain positive that it is still likely to happen.
"The stagnation of the BETI on face value seems to have returned, but keep in mind that school holidays started ten days earlier than it did in 2012," said Schussler.
