South Africa business activity rises in August, PMI shows
3:20 am Wednesday, September 04th, 2024
JOHANNESBURG (Reuters) – South African private sector activity rose in August as firms received higher volumes of new orders for the first time since April 2023, a survey showed on Wednesday.
The S&P Global South Africa Purchasing Managers’ Index rose to 50.5 in August from 49.3 in July, the first time it has been above the 50 point mark – which separates growth from contraction – in three months.
“South African businesses saw demand growth emerge in August, as customers increased their spending on the back of falling CPI inflation figures and a general optimism that economic conditions are stabilising,” said David Owen, senior economist at S&P Global Market Intelligence.
South Africa’s inflation fell to a more than three-year low of 4.6% year on year in July from 5.1% in June, offering some relief to consumers and cementing analysts’ expectations for an interest rate cut this month.
“The rise in new orders was the first recorded in over a year, offering hope that the recent malaise in the private sector is starting to fade,” Owen added.
(Reporting by Tannur Anders; Editing by Christina Fincher)
