Views Article – Sharenet Wealth

Africa, News

S.Africa business activity picks up for third straight month in July – PMI

JOHANNESBURG, Aug 3 (Reuters) – South African private sector activity growth sped up for the third straight month in July on improving new orders, output and employment numbers, a survey showed on Wednesday.

The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to a 14-month high of 52.7 in July, up slightly from 52.5 in June. Readings above 50 indicate growth in activity.

New orders, output and employment registered the quickest rates of expansion since mid-2021.

“The South African economy remained firmly on the upside in July as businesses saw client demand improve,” said David Owen, economist at S&P Global Market Intelligence.

“(But) the current growth spurt in the economy may be short-lived, as businesses and households start to rein in spending to cope with inflation,” Owen added.

South Africa’s consumer and producer inflation are at multi-year highs, spurred by higher global commodities prices linked to the war in Ukraine and supply chain disruptions related to the COVID-19 pandemic. (Reporting by Alexander Winning; Editing by Hugh Lawson)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.