South Africa: South African business activity continues to expand in March
March 3, 2017
Business activity in South Africa’s private sector expanded for a seventh consecutive month in March, which is the longest sequence of positive readings in five years. The Standard Bank Purchasing Managers’ Index (PMI) edged up from 50.5 in February to 50.7 in March, thereby remaining just above the 50-mark, signaling expansion in South Africa’s business activity.
March’s result reflected that all five sub-components of the PMI—new orders, output, employment, suppliers’ delivery times and stocks of purchases—were all positive in March. New orders and production increased slightly faster from the previous month, while employment creation slowed. Supplier delivery times lightened only slightly. In terms of price developments, input prices moderated for the ninth consecutive month in March, which led businesses to reduce their prices charged to clients.
Author: Ricardo Aceves, Senior Economist