South Africa

South Africa PMI August 2020

South Africa: PMI increases in August

The South Africa IHS Markit Purchasing Managers’ Index (PMI) increased to 45.3 in August from 44.9 in July, logging the best reading in six months. However, the index remained entrenched below the critical 50-threshold, indicating a deterioration in operating conditions in the private sector compared to the previous month.

August’s print was mainly driven by a softer contraction in output, although the decline remained steep, reflecting continued Covid-19 restrictions. While export demand fell at a quicker clip than in July, the decline in overall sales was the slowest in six months. For its part, employment decreased sharply in August as firms shed jobs amid a reduction in backlogs. The rate of job shedding was the softest since April, however. On the price front, input cost inflation picked up pace due to currency weakness, while output charges fell in August owing to frail demand. Lastly, sentiment in the sector was broadly unchanged in August. Although firms see rising output in the coming year due to the easing of coronavirus measures, the overall confidence was still below the historical trend.

Commenting on August’s reading, David Owen, economist at IHS Markit, noted:

“The imposition of stricter Covid-19 measures across South Africa in July and August, after having eased in June, mean we are increasingly seeing a long-tailed recovery in the economy according to the PMI.”

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