S.Africa’s private sector contracts at slower pace in Nov: PMI

0
487
A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

JOHANNESBURG, Dec 5 (Reuters) – South African private sector activity shrank again in November, albeit at a slower pace than the previous month, as firms cut inventories to their lowest level in more than four years, a survey showed on Wednesday.

The Purchasing Managers’ Index (PMI), compiled by IHS Markit, rose to 48.2 in November from 46.9 in October but stayed below the 50 mark which separates expansions from contractions for the fourth straight month.

SPONSORED STORIES

Four of the five sub-indexes in the survey were in contraction territory, with stock purchases the hardest-hit at a 52-month low. Output shrank, but at a slower pace than the previous month, while employment inched down to 50.0 from 50.2 in October.

“Firms will be glad to see the recent decline in activity soften in November, even if this was the fifth successive month where the PMI was below 50. Nevertheless, the current trend still suggests flat annual GDP growth in Q4,” said IHS Markit economist David Owen.

Africa’s most industrialised economy climbed out of its first recession in nearly a decade in the third quarter, posting quarter-on-quarter growth of 2.2 percent as manufacturing, agriculture and retailing offset a sharp slide in mining output.

“Importantly, input prices rose at a far slower pace in November. This will ease worries of stronger inflation and hence a further up-tick in interest rates,” Owen added.

SHARE
Previous articleTunisia’s inflation stable at 7.4 pct in November
Next articleDon’t rig 2019 elections like Osun, Ekiti, PDP tells INEC
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.