South Africa PMI August 2018

South Africa

South Africa: PMI nosedives in August on economic anxieties, weak rand

September 5, 2018

In August, the Standard Bank Purchasing Managers’ Index (PMI) plummeted 2.1 points to 47.2 points, retreating further from the 50.0-point threshold that distinguishes deterioration from improvement in the South African business environment. August’s reading pointed to sharp declines in both output and new orders across the private sector.

Amid growing concerns over the political and economic crises that hit South Africa in August, firms reported a near-record decline in new orders. In turn, output fell precipitously and shortages of new work forced layoffs. Purchasing activity also suffered, while strikes contributed to lengthening delivery times. Meanwhile, the weak rand pushed up costs and drove firms to hike selling price considerably.

FocusEconomics Consensus Forecast panelists see fixed investment expanding 0.9% in 2018, which is unchanged from last month’s estimate. For 2019, the panel expects fixed investment to increase 2.1%.


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South Africa PMI Chart

South Africa PMI August 2018 0

Note: Standard Bank Purchasing Managers’ Index. Readings above 50 indicate an improvement in business conditions while readings below 50 point to a deterioration.
Source: Standard Bank

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