Business activity stabilised in February: S&P PMI

The South African private sector activity stabilised in February after a sharp drop the previous month, a survey showed on Friday.

The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to 50.5 in February from 48.7 in January. A reading above 50 reflects growth.

“The latest South Africa PMI helped to allay fears of a renewed downturn in the private sector economy, after a rocky start to the year saw the headline index hit a 13-month low,” said David Owen, senior economist at S&P Global Market Intelligence.

“However, while output levels stabilised in February, they did so after contracting at a solid pace,” Owen added.

Surveyed firms reported a slight recovery in purchasing levels, but the outlook for future activity worsened further and firms cut employment for the first time in a year, the PMI showed.