South Africa: PMI signals modest economy-wide contraction in July
August 3, 2018
In July, the Standard Bank Purchasing Managers’ Index (PMI) fell 1.6 points to 49.3 points, dipping below the 50.0-point threshold that distinguishes deterioration from improvement in the South African business environment for the first time in six months. July’s reading pointed to declines in both output and new orders across the private sector.
Amid weaker demand and widespread strikes, both output and new orders fell in July. In turn, employment fell, as did purchasing activity. Inflation persisted, sending both input and output prices higher—albeit at slower rates than in June. Inventories, meanwhile, fell in the month.