South African Private Sector Logs Further Marginal Expansion

(RTTNews) - South Africa's private sector continued to expand marginally in July, supported by easing inflationary pressures along with a renewed expansion in output, survey results from S&P Global showed Wednesday.

The purchasing managers' index for the private sector economy dropped to 50.3 in July from 50.5 in June. Nonetheless, a score above 50.0 indicates expansion.

Business activity increased for the first time in three months in July, driven by cooling inflationary pressures and efficiency improvements. However, the growth was only marginal due to weak demand and political protests.

Supply chain pressures persisted in July as import shipments faced continued delays from Middle East conflict disruptions. Consequently, companies reduced their purchasing activity and employment, with the rate of growth easing to a 6-month low.

On the price front, input price inflation slowed to a 4-month low as purchase price increases moderated and wage growth decelerated from historically strong levels. Consequently, selling prices rose at the slowest pace in five months.