Business activity grew in January as Omicron wave receded
IHS Markit’s PMI rose to 50.9 in January, slightly back above the 50 neutral mark into expansionary territory
03 February 2022 - 11:47
byVuyani Ndaba
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Private-sector activity rose slightly in SA in January as the Omicron wave of Covid-19 cases receded, lifting demand and stabilising new business, a survey showed on Thursday.
IHS Markit’s purchasing managers’ index (PMI) rose to 50.9 in January from 48.4 in December, slightly back above the 50 neutral mark into expansionary territory.
“The latest PMI data suggested an improvement in demand conditions in SA during January, as the Omicron wave of Covid-19 receded and clients began to spend again,” said David Owen, economist at IHS Markit.
Still, supply chain challenges remained acute, with a number of businesses struggling to stock the inputs they need while facing sharp inflationary pressures for materials and transport.
Looking ahead, Owen added that business optimism was strengthened by hopes that the economy will cope well with any future waves of the pandemic, particularly as hospitalisations and deaths were much lower with the Omicron variant in spite of minimal government measures.
The rapid decline in the Omicron wave prompted a surge in business optimism to the highest in just over seven years, amid greater promise that economic conditions would be less affected by the pandemic in 2022.
SA no longer requires those who test positive for Covid-19 without symptoms to isolate and has also reduced the isolation period for those with symptoms by three days, as the country exits its fourth wave of the coronavirus.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Business activity grew in January as Omicron wave receded
IHS Markit’s PMI rose to 50.9 in January, slightly back above the 50 neutral mark into expansionary territory
Private-sector activity rose slightly in SA in January as the Omicron wave of Covid-19 cases receded, lifting demand and stabilising new business, a survey showed on Thursday.
IHS Markit’s purchasing managers’ index (PMI) rose to 50.9 in January from 48.4 in December, slightly back above the 50 neutral mark into expansionary territory.
“The latest PMI data suggested an improvement in demand conditions in SA during January, as the Omicron wave of Covid-19 receded and clients began to spend again,” said David Owen, economist at IHS Markit.
Still, supply chain challenges remained acute, with a number of businesses struggling to stock the inputs they need while facing sharp inflationary pressures for materials and transport.
Looking ahead, Owen added that business optimism was strengthened by hopes that the economy will cope well with any future waves of the pandemic, particularly as hospitalisations and deaths were much lower with the Omicron variant in spite of minimal government measures.
The rapid decline in the Omicron wave prompted a surge in business optimism to the highest in just over seven years, amid greater promise that economic conditions would be less affected by the pandemic in 2022.
SA no longer requires those who test positive for Covid-19 without symptoms to isolate and has also reduced the isolation period for those with symptoms by three days, as the country exits its fourth wave of the coronavirus.
Reuters
WATCH: Ascendis Health not planning to delist
WATCH: Rand shakes off last week’s market rout
WATCH: Factory activity picks up in January
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.