State of business worsens in October, but less so than in September
Indices tracking output and new orders continued to fall albeit at a slower pace, while stock of purchases also remained in contraction
Business conditions in SA have continued to deteriorate, given the weak economic climate. The Standard Bank purchasing managers index (PMI) rose slightly to 49.6 in October from 48.5 in September. The survey, sponsored by Standard Bank and produced by Markit, provides an early indication of operating conditions in SA. Readings above the neutral 50 show an expansion in business conditions. Indices tracking output and new orders continued to decline albeit at a slower pace while stock of purchases also remained in contraction. Meanwhile employment increased after declining in September. Standard Bank economist Thanda Sithole said: "The continued deterioration in the economy-wide PMI is reflective of weak domestic economic activity alongside depressed business and consumer confidence. The decline in the PMI is likely to persist in the near term amid continued domestic political turmoil and a bleak fiscal and economic outlook reflected in the medium-term budget policy statement." On...
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