South Africa's Private Sector Activity Unchanged in August - PMI
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South Africa’s private sector activity remained in contraction for the
fourth consecutive month in August. Incidentally, new orders and output fell
in the period under review due to slower rates, according to survey on
Wednesday.
IHS Markit’s Purchasing Managers’ Index (PMI) survey increased to 49.7
in August from 48.4 in July. But still remaining below the 50 point mark that
separates expansion from decline.
All five sub-indexes in the survey were improved from a month before
although three still showed a contraction, with the new orders component
falling for the 14th consecutive month, which consequently weighed on output.
IHS Markit's economist, David Owen says that,
“weak economic sentiment weighed on the private sector again in August.”
“Companies noted a further drop in customer turnout, as the
disappointment of the first quarter economic growth results continued to
dampen spending.”
South African GDP grew more than expected in the second quarter of
this year thanks to a recovery in mining and manufacturing, data showed on
Tuesday, after a shock contraction in the first quarter.
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