South Africa business activity falls in June, S&P PMI shows
South African private sector activity fell in June as output and new orders slipped on uncertainty over the outcome of an election held in May, a survey showed on Wednesday.
The S&P Global South Africa Purchasing Managers' Index fell to 49.2 in June from 50.4 in May. A reading below 50 indicates contraction.
South Africans voted in a national election on May 29, which saw the African National Congress lose its parliamentary majority for the first time since the end of apartheid 30 years ago, creating some uncertainty in financial markets.
The ANC opted to rule in a government of national unity with 10 other political parties and markets spent much of June awaiting the composition of President Cyril Ramaphosa's Cabinet.
"The PMI's print of 49.2, linked to sharper falls in output and new orders, was largely due to a temporary pause in customer spending as businesses awaited the outcome of the general election," said David Owen, senior economist at S&P Global Market Intelligence.
Business conditions deteriorated on the quickest fall in output in three months and a drop in new order volumes for the fourteenth month in a row.
"We may see a slight recovery in sales in July as firms return to normal activity," Owen said.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation