S. African business activity contracts in September -PMI

Oct 5 (Reuters) – South Africa’s private sector activity contracted in September as power outages widened, leading to a sharp drop in output and new orders, a survey showed on Wednesday.

The S&P Global South Africa Purchasing Managers’ Index (PMI) fell to 49.2 in August from 51.7 in September. A reading below 50 indicates an active contraction.

Both production and sales prices are the most recorded in 2022.

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“Output and new business have fallen sharply since last December,” said David Owen, chief economist at S&P Global Market Intelligence.

However, Owen said there were signs that inflation was slowing on the back of lower commodity prices.

Power cuts at South Africa’s state utility Eskom have hit a record this year as inefficient coal-fired power stations suffer frequent outages.

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Reporting by Bhargav Acharya and Alexander Winning; Editing by Susan Fenton

Our standards: The Thomson Reuters Trust Principles.

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