South Africa’s private sector returned to growth in June as easing inflationary pressures and resilient hiring lifted business conditions, although weak demand continued to weigh on output and new orders.
The S&P Global South Africa Purchasing Managers’ Index rose to 50.5 in June from 49.6 in May, its highest reading in two months and above the 50-point threshold separating expansion from contraction.
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The reading signalled an improvement in private-sector conditions for the third time in four months. However, the expansion was marginal, as output and new orders continued to decline for a second consecutive month, albeit at a slower pace than in May.
“The PMI’s recovery in June was mainly helped by resilient hiring at South African companies, although output and order books fell at slower rates than in May,” David Owen, principal economist at S&P Global Market Intelligence, said.
