South Africa’s Business Activity Take a Dip Again In July

According to a survey shown on Thursday, business activity took a dip for the fifth month in July. The S&P Global South Africa Purchasing Managers’ Index (PMI) dropped to 48.2 in July from 48.7 in June.

With rising prices and weak business confidence weighed on demand including weak currency and faltering economy, while the rate of inflation quickening slightly meant South African firms passed costs on to customers according to survey.

Ongoing power cuts also affect businesses and how it affects their operation.

“At 48.2, the index was also at its second lowest in exactly two years, suggesting that the private sector remains stuck in a downturn that may prove difficult to escape,” said David Owen, economist at S&P Global Market Intelligence.

“A further sharp increase in selling prices signals that customers could face additional pain at a time of already weakened finances, adding even greater gloom to the demand outlook,” Owen added.