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South Africa’s private sector expanded at a softer pace in June, survey data from IHS Markit showed on Monday.

The headline Purchasing Managers’ Index rose to 51.0 in June from 53.2 in May. Any reading above 50 indicates expansion in the sector.

Output declined for the first time in six months in June and and new business remained unchanged. New export orders fell for the first time in three months.

Employment and backlogs of work increased in June, with both series rising at the fastest rate since November 2012. Suppliers’ delivery time lengthened.

Input price inflation rose at the quickest rate since October 2018 and output charge inflation eased to the lowest in three months in June.

Business confidence weakened for the second month in a row in June amid concerns of Covid-19 restrictions affecting the economic activity in the near future.

“That said, the move to Level 4 at the end of June will likely lead to a sharper decline in activity over July,” David Owen, an economist at IHS Markit, said.


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