The health of the South African private sector is expected to continue to deteriorate, given weak economic conditions, a business survey shows. The Standard Bank purchasing managers’ index (PMI), which looks at the whole economy, remained in contraction territory for a fifth consecutive month, dropping slightly to 48.4 in December from 48.8 in November. The survey, sponsored by Standard Bank and produced by Markit, provides an early indication of operating conditions in SA. Readings above the neutral 50-point mark show an expected expansion in business conditions. According to Standard Bank, December’s survey data indicated the fastest decline in 20 months. The survey showed output fell rapidly — at the fastest rate in 21 months — while new business also decreased. The employment subindex fell for the second month, and at a faster pace than in November. Standard Bank economist Thanda Sithole said: "The decline in the PMI is likely to persist in the near term amid a deteriorating fis...
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.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.