JOHANNESBURG, May 4 (Reuters) - South African private
sector economic activity contracted for a second consecutive
month in April as power cuts and inflationary pressures weighed
on businesses, a survey showed on Thursday.
The S&P Global South Africa Purchasing Managers' Index (PMI)
fell to 49.6 in April from 49.7 in March. A reading above 50
shows growth.
The contraction was mainly due to capacity constraints from
power cuts and supply shortages despite a slight uplift in
demand, while inflationary pressures remained high and led to
decreases in purchasing and employment, the survey showed.
"South African companies continued to struggle with multiple
headwinds on the economy... Load shedding (power cuts), input
shortages and longer lead times each acted to limit business
capacity and drive another solid drop in output," said David
Owen, senior economist at S&P Global Market Intelligence.
"The bleaker outlook from (power utility) Eskom in recent
weeks regarding electricity supply adds to signs that business
conditions could remain subdued in the near term."
The rolling power cuts in Africa's most industrialised
economy have left households and businesses in the dark for up
to 10 hours a day.
(Reporting by Bhargav Acharya; editing by John Stonestreet)
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