(Reporting by Olivia Kumwenda-Mtambo Editing by Alexander Winning)
JOHANNESBURG, March 1 (Reuters) - South African
manufacturing activity contracted sharply in February as
unprecedented power cuts led to a marked deterioration in
business conditions, a survey showed on Wednesday.
The seasonally-adjusted Absa Purchasing Managers' Index
(PMI) fell to 48.8 points in February from 53.0 points in
January, slumping below the 50-point mark that separates
expansion from contraction for the first time since September
2022.
The business activity, new sales orders, employment and
inventories indices were all in contractionary terrain, Absa
said in a statement.
"Load-shedding once again featured frequently in the
commentary where respondents explained why activity declined
relative to the previous month," Absa said, using a term for
power outages.
Struggling state electricity utility Eskom has implemented
power cuts every day this year due to breakdowns at its
coal-fired power plants, after a record number of days with
outages last year.
There was a steep fall in the PMI index measuring expected
business conditions in six months' time, with the index falling
to its lowest level since May 2020.
"This means that respondents have not been this downbeat
about future conditions since the country was slowly moving out
of the strictest phase of the COVID lockdown," Absa said.
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