South Africa

South Africa PMI August 2023

South Africa: Private sector conditions improve at strongest pace in a year in August

The S&P Global Purchasing Managers’ Index (PMI) rose to a one-year high of 51.0 in August, up from the prior month’s 48.2. As such, the index broke through the 50.0 no-change threshold for the first time since February, signaling an improvement in private sector operating conditions compared to the previous month.

August’s upturn was largely due to output growing for the first time in a year amid improving demand conditions. In addition, employment levels rose, with the job creation rate accelerating to a near one-year high. Meanwhile, new orders fell at the slowest pace in four months, but load shedding and the ongoing cost-of-living crisis continued to weigh on sales.

Turning to prices, input cost inflation eased to the softest rate since January. Consequently, selling charges increased at the slowest rate in six months. Still, a weak South African rand against the U.S. dollar and supply disruptions—partly due to taxi strikes—continued to drive price pressures in the month. Lastly, while firms’ sentiment regarding expectations for the year ahead remained strong, they eased from July’s nine-month high. Expectations of receding inflation aiding demand and reduced load shedding underpinned firms’ 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