South Africa

South Africa PMI September 2019

South Africa: Business conditions deteriorate for fifth consecutive month in September

Business conditions in South Africa’s private sector deteriorated for the fifth consecutive month, with the IHS Markit Purchasing Managers’ Index (PMI) sliding to 49.2 in September from 49.7 in August. Thus, the index moved further below the critical 50-threshold, signaling a more marked rate of contraction in private-sector activity in September than the previous month.

Output and new orders fell more rapidly in September as overall demand shrank for the fifteenth month running amid the persistence of challenging economic conditions. Moreover, reports indicated that the activity of some firms was hampered by the emergence of social unrest in the month as thousands took to the streets to protest against gender violence. As a result of the fall in production, firms hired less workers. Meanwhile, on the price front, overall input costs rose more softly, reflecting a fall in staff costs. In a bid to revive sales, firms cut their output prices marginally in September. Lastly, the outlook on future activity remained muted. While sentiment was overall positive, uncertainty over the economy’s prospects weighed on the projection. 

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest