South Africa Business Activity Picks Up in Feb. PMI survey Shows

In a positive turn, South African private sector activity expanded in February for the first time in six months, fueled by increased staffing and purchasing levels amidst stronger confidence, according to the S&P Global South Africa Purchasing Managers’ Index (PMI).

The index rose to 50.8 in February from 49.2 in January, marking a return to expansionary territory for the first time since August.The improvement in operating conditions was attributed to stabilized new business volumes, following significant declines in previous months. While output continued to decline, the rate slowed, indicating a gradual recovery trend.

David Owen, senior economist at S&P Global Market Intelligence, noted that the cooling inflation environment played a crucial role in market revival.

However, he cautioned against complacency, emphasizing ongoing economic challenges despite the stabilization in new orders. South Africa continues to grapple with power shortages and challenges at state-owned logistics company Transnet, which has struggled to provide sufficient freight rail and port services. The Durban port still faces container backlog, posing additional hurdles to the country’s economic recovery efforts.

Source: Reuters