South African Private Sector Expands In May

(RTTNews) - South Africa's private sector grew for the first time in six months in May as output logged the quickest growth in four years, survey results from S&P Global showed Wednesday.

The purchasing managers' index rose to 50.8 in May from 50.0 in April. Any score below 50.0 indicates contraction, while a reading above 50 indicates expansion in the sector.

Output growth was the strongest since May 2021, linked to new project starts and rising domestic orders. New orders rose at the fastest pace in eight months, which was evident in the domestic market as new export orders decreased due to weak foreign demand.

The survey revealed that businesses bought additional inputs and accumulated stocks at the strongest rate for a year, while vendor performance continued to improve.

On the price front, input price inflation eased markedly in May amid easing supply chain pressures, while selling prices decreased marginally.

Looking ahead, firms remained confident about business activity over the next twelve months.