South Africa’s private sector contracted for the first time in ten months in July, survey data from IHS Markit showed on Wednesday.
The headline Purchasing Managers’ Index fell to 46.1 in July from 51.0 in June. Any reading below 50 indicates contraction in the sector.
New orders dropped for the first time in four months in July and export sales declined.
Employment decreased in July and backlogs of work increased further. Suppliers’ delivery time lengthened.
Input costs increased in July and output price inflation eased to the lowest in four months.
The degree of confidence in the next 12-months weakened in July, but firms still expect an improvement in the future.