South Africa’s private sector activity contracted at the steepest pace in fourteen months in September, survey figures from Markit Economics showed Monday.
The Standard Bank South Africa Purchasing Managers’ Index, or PMI, dropped to 47.9 in September from 49.3 in August. Any reading below 50 suggests contraction in the sector.
New business received by the private sector firms declined further in September on poor economic environment. The latest rate of decrease was the strongest since July.
Business activity dropped sharply in September and the pace of contraction marked the quickest in fourteen months
Staffing levels decreased for the first time since May due to lack of new work. Nonetheless, the rate of job shedding was only marginal overall. Backlogs of work also dropped for the tenth successive month in September.
On the price front, input price inflation slowed marginally in September as purchase prices and staff costs both rose at weaker rates. Selling prices increased further to a 4-month high in September.
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