New cases set back recovery, South Africa cuts rates to record low

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Recovery Setback?

• Air travel in July was just 40% of pre-pandemic levels.
• New cases of COVID-19 set back recovery in bar-and-restaurant traffic.
• Rebound in credit card spending slowed in July as infections rose.
• Pace of recovery highly dependent on consumer spending.

South Africa: Stimulus, Low Rates Face Challenges

• Mining, manufacturing activity tumbled in May amid pandemic.
• Rates cut to record low; concerns over inflation rate falling further.
• Stimulus and low rates steepen yield curve in a positive sign.
• Economic recovery contingent upon containing coronavirus.