South Africa’s (SA) private sector activity contracted for the second consecutive month in November driven by sustained falls in output and new business volumes, an Standard & Poor’s (S&P) Global survey showed on Wednesday.
The Purchasing Managers’ Index (PMI) rose slightly to 49.0 from 48.8 in October, but remained below the 50.0 mark that separates growth from contraction.
Price pressures intensified, with firms experiencing the sharpest rise in input costs in over a year, prompting them to increase output charges at the quickest rate since February.
“Firms raised their selling prices at the fastest rate in nine months, which signalled only a limited ability to absorb cost burdens,” said David Owen, Senior Economist at S&P Global Market Intelligence.
Headline consumer inflation in Africa’s largest economy currently sits at 3.6% year-on-year, an increase from 3.4% recorded previously.
However, business expectations improved to a 12-month high, with nearly half of the surveyed firms forecasting increased activity in the coming year, citing new business opportunities and hopes for broader economic recovery.
–Reuters–
