FX.co ★ South Africa Private Sector Contracts Again

The S&P Global South Africa PMI edged up to 49.0 in November, up from 48.8 in October, indicating a second straight month of economic contraction. Both output and new business continued to decline at rates similar to the prior month, highlighting feeble domestic demand and a lack of new projects. Even with a rebound in international sales, overall new business decreased, particularly within the industrial and construction sectors, which experienced significant downturns. The pressure on costs escalated, as firms encountered the sharpest rise in input costs in over a year due to increased purchase prices and rising wages. This development led companies to increase their selling prices at the fastest rate since February. Supplier delivery times improved for the eighth consecutive month, albeit at a slower pace than October's record. Employment saw a slight increase, and purchasing activity plateaued. However, business confidence reached a 12-month high, as 46% of firms anticipate higher output in the coming year.