South Africa private sector activity rises to 50.5 in August

  • South African private-sector activity expanded slightly in August, according to the S&P Global South Africa PMI.
  • The PMI rose to 50.5 from 50.3 in July, with 50 separating growth from contraction.
  • Output grew for a second month, while export sales reached a three-month low.

South African private-sector activity expanded slightly in August, with the S&P Global South Africa Purchasing Managers’ Index (PMI), a business activity gauge, rising to 50.5 from 50.3 in July. The 50 threshold separates expansion from contraction. Marginally higher new orders reflected larger orders, successful tenders and stronger sales as customer finances improved. Output grew for a second consecutive month at its fastest pace since April, while purchasing activity increased at its quickest rate since March, lifting input stocks at the fastest pace in four months. Export sales remained only slightly positive and fell to a three-month low. S&P Global Market Intelligence Senior Economist David Owen said business expectations also depend on recovering domestic and external economic conditions, leaving the path to stronger growth unclear.

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