July 5 (Reuters) – South Africa's private sector activity expanded at a faster pace in June, supported by demand and employment growth, a survey showed on Tuesday.
Thank you for reading this post. Don't forget to subscribe.
The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 52.5 in June from 50.7 in May, its highest level in about a year. Above 50.0 indicates growth in this sector.
“The pace of growth in production and new orders has accelerated, pushing job growth to its strongest level in a year,” said S&P Global economist David Owen.
South African businesses surveyed said improved economic conditions, particularly in areas affected by recent floods, had led to an increase in sales.
Mr Owen said it was encouraging that PMI rose to a 13-month high in June, as many businesses were experiencing a decline in customer demand due to increased pricing pressures.
Mr Owen added: “Without the sudden rise in prices, the recent economic recovery would likely have been faster.”
He said shortages related to the war in Ukraine and China's lockdown were also slowing supply chain recovery.
“Furthermore, the input price index has reached its highest level since March 2014, and the data suggests that the South African economy faces a period of severe inflation in the second half of this year,” Owen said. .
Reporting by Anait Mirijanian in Gdańsk.Editing: Katherine Evans
