SOUTH African private sector activity expanded at a slower rate in August amid signs of a slowdown in customer demand, a survey showed on Monday.
The S&P Global South Africa Purchasing Managers’ Index (PMI) fell to 51.7 in August, its lowest in three months, from 52.7 in July. Readings above 50 indicate growth in activity.
As cost pressures remained sharp, some businesses reported that clients had reined in spending due to global growth concerns, which led to the softening in the rate of expansion.
David Owen, economist at S&P Global Market Intelligence, said the survey showed business conditions improving in August, but at a reduced pace compared with July due to early signs that customer confidence was starting to wane over high inflation and global recession fears.
After riding high in recent months, there were some positive signs that inflation had begun to cool in August, Owen said.
“Firms indicated that lower commodity prices had helped to ease overall cost pressures, although higher fuel prices and exchange rate fluctuations remained key hindrances,” he added.
REUTERS
