JOHANNESBURG, Aug 2 Reuters The South African rand was stronger in early trade on Friday, helped by signs of improvement in the domestic economy and dollar weakness on global markets.

The rand traded at 18.2275 against the dollar at 0635 GMT, up about 0.3 from Thursday39;s close.

The dollar was down about 0.1 against a basket of currencies after an unexpected slump in U.S. manufacturing raised fears of an economic downturn.

South African data on Thursday showed electricity generation increased 5.4 year on year in June. A purchasing managers39; index survey for the manufacturing sector, meanwhile, showed a sharp rebound in July.

Structural improvements in the South African economy should continue to support the rand, Commerzbank analyst Volkmar Baur said in a research note.

Later on Friday South Africa39;s government will auction 1 billion rand 54.9 million of inflationlinked bonds.

1 18.2188 rand

Reporting by Alexander Winning Editing by David Goodman

Source Reuters