South Africa

South Africa PMI December 2017

South Africa: PMI points to a further deterioration in private sector business conditions in December

Activity in the private sector remained in contractionary territory for a fifth consecutive month in December. The Standard Bank Purchasing Managers’ Index (PMI) came in at 48.4, below November’s 48.8 print. The indicator therefore fell further below the 50-point threshold that separates expansion from contraction, and below the six-year long-run survey average of 50.7.

December’s print reflected a decline in output, total new orders and new business from abroad. A drop in business activity due to muted client demand and a deterioration in business conditions were largely behind the decline in output, which contracted at the fastest pace in 21 months. New business from abroad also declined in December largely due to heightened political uncertainty in anticipation of the ANC National Congress, which took place on 16–20 December. Weak demand resulted in a steep drop in employment, purchasing activity and inventories. Regarding price developments, output prices rose as firms passed on higher input costs to consumers.

Commenting on December’s figure, Economist Thanda Sithole at Standard Bank said:

“The decline in the PMI is likely to persist in the near term amid deteriorating fiscal outlook and elevated risk of further sovereign ratings downgrades. However, further declines in the private sector PMI could potentially be averted should the governing party work tirelessly to restore lost business confidence.

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