South Africa: PMI drops in February
March 4, 2016
The Standard Bank Purchasing Managers’ Index (PMI) decreased from 49.6 in January to 49.1 in February. As a result of the decrease, the index is now further below the 50-threshold, which separates expanding from contracting conditions in business activity.
February’s decrease mainly reflected that output in the private sector and new orders dropped at a sharper rate compared to January. However, employment recorded marginal gains in February. Analysts added that, “inflationary pressures may start to erode some of SA’s competitive advantage; the rise in input prices, particularly purchase prices, attributed to the exchange rate and staff costs, resulted in companies increasing their selling prices by one of the fastest rates recorded over the past two years.”
Author: Dirina Mançellari, Senior Economist