• Mini budget: Lost trust

    The elephant in the room is a bigger danger to SA than weak finances, says Jaco Leuvennink.

  • Time to tackle floods

    Government isn't doing enough so it's up to us to take responsibility, says Mandi Smallhorne.

  • Conquering prejudice

    Every workplace would benefit from a self-critical process relating to prejudices, says Ian Mann.

Loading...

SA private sector remains in doldrums, PMI shows

Jan 06 2016 11:33

Cape Town - Poor market conditions and a lack of demand were the main drivers behind a drop in the latest seasonally adjusted Standard Bank South Africa Purchasing Managers' Index (PMI) from 49.6 to 49.1.

Readings above 50 for the survey signal an improvement in business conditions on the previous month, while readings below this level show a deterioration.

December data highlighted a continuation of the downturn in South Africa’s private sector that started in June, with business conditions deteriorating at a slightly stronger rate than in November. 

"South Africa's private sector remained in the doldrums in December, thereby continuing the trend that has defined the second half of 2015," said Markit economist Oliver Kolodseike.

Companies reported a marginal decline in new business, following a stabilisation in the previous month. New orders from foreign markets fell in December while there was a slight drop in private sector employment, as has been the case since September.

“With business outstanding falling further and conditions in the sector showing no signs of immediate improvement, companies continued to cut jobs, although the rate of job shedding remained marginal overall," said Kolodseike.

Input costs rose further in December. The rate of inflation was little changed from the previous month, as a weaker
increase in average staff costs offset a sharper rise in purchase prices.

Companies continued to pass on higher costs to their clients as highlighted by a rise in output prices, which increased at the fastest pace since May.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

pmi  |  sa economy

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Pick n Pay launches new website for easier online shopping

Previous results · Suggest a vote

Loading...