South Africa: South Africa's business activity expands at slower rate in January
February 3, 2017
The Standard Bank Purchasing Managers’ Index (PMI) inched down from 51.6 in December—a 21-month high—to 51.3 in January. The PMI remained above the 50-mark, but January’s mild decline suggests a moderation in the pace of growth in South Africa’s business activity.
January’s result stemmed from slower growth in new orders and production due to a contraction in exports. On a positive note, as client demand remained healthy domestically, businesses increased their staff numbers, which led to a seventh consecutive month of job creation. Meanwhile, supplier delivery times lengthened for the first time in three months in January. In terms of price developments, South African businesses continued to face high input prices, particularly due to a weak currency.
Author: Ricardo Aceves, Senior Economist