September South African Business Activities Contract – PMI

Oct 5 (Reuters) – Private sector activity in South Africa contracted in September as output and new orders fell sharply due to deepening power outages, a survey showed on Wednesday.

S&P Global’s South African Purchasing Managers’ Index (PMI) fell to 49.2 in September from 51.7 in August. A reading below 50 indicates a contraction in activity.

The drop in production and sales is by far the largest recorded in 2022.

Sign up now for free unlimited access to

“Output and new business fell at the fastest pace since December as businesses and consumers reined in spending due to load shedding (power outages) and the cost of living crisis,” S&P Global Market Intelligence economist David Owen said.

However, Owen said there were signs that inflationary pressures were easing as commodity prices fell.

Power outages in South Africa have reached record levels this year as state utility Eskom’s inefficient coal-fired power station fails repeatedly.

Sign up now for free unlimited access to

Reporting by Bhargav Acharya and Alexander Winning; Editing by Susan Fenton

Our Standard: The Thomson Reuters Trust Principles.

Source link