Despite that, firms remained broadly optimistic regarding the 12-month outlook, with over half of all respondents expecting activity to grow, S&P added. (Reporting by Anait Miridzhanian; Editing by Toby Chopra)
JOHANNESBURG, Feb 3 (Reuters) - Activity in South
Africa's private sector in January contracted a its fastest pace
since the end of 2021 as new orders fell due to rolling power
cuts and weak economic conditions, a survey showed on Friday.
S&P Global's South Africa purchasing managers' index (PMI)
contracted to 48.7 in January from 50.2 in December. Readings
below 50 indicate a contraction in activity.
"The South African economy suffered a fresh downturn at the
beginning of 2023, driven by a stronger decline in new business
inflows that was the most marked in just over a year," David
Owen, economist at S&P Global Market Intelligence, said.
Another round of power outages caused further disruption to
supply chains and curtailed business activity, S&P said.
Struggling state utility Eskom has implemented power cuts
every day this year, after a record number of days with outages
in 2022.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.