Downturn in South Africa’s private sector continues
Nevertheless, output and new orders fell further and companies cut employment to the greatest extent in the survey’s history.
The PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%).
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The seasonally adjusted Standard Bank South Africa PMI rose slightly from March’s 20-month low of 47.0 to 47.9 in April.
Despite ticking higher since the previous month, the PMI was indicative of one of the most marked deteriorations in business conditions in the survey’s history.
Moreover, it was the eleventh consecutive reading below the 50.0 no-change mark. ■