The economy remains fragile but is slowly returning to growth, according to BankservAfrica's Economic Transaction Index (Beti) released on Thursday.
"While the economy declined by -1.4 percent, it is less than the August decline of -3.2 percent," BankservAfrica head of marketing Michael Rubenstein said in a statement. It showed an economy trying to bounce back. "Let's hope that this signals a turning point in the economy, to get us back to slow growth."
'The economy is at long last showing signs of life rather than decline'
Mike Schüssler, chief economist at www.economists.co.za, said while a smaller decline was a massive improvement, the economy was still fragile.
He said economic growth would remain weak and probably at levels of around one percent.
"The Beti saw a far more normal month in September transactions than July or August 2014. The Beti indicates that, despite being in decline, the economy is getting back onto its feet and may start to crawl along again soon," Schüssler said.
The total number of transactions used in the Beti increased by 7.4 percent year-on-year to 85.5 million. However, the average value of the transactions increased by only 1.2 percent.
Rubenstein said this was the strongest increase in the number of transactions since July last year and indicated economic activity was growing.
Schüssler said the data showed the economy was getting back to growth, albeit slow growth.
"The economy is at long last showing signs of life rather than decline."