South Africa's private sector rebounds as sales and employment see positive uptick

SOUTH Africa's private sector has emerged from a difficult downturn, recording a slight uptick in sales that has reignited activity and employment.

- SIPHELELE DLUDLA

The S&P Global South Africa Purchasing Managers’ Index (PMI) released on Tuesday reported a rise to 50.0 in April—a neutral mark that separates growth from contraction—marking a notable increase from last month's figure of 48.3.

This signals a shift after four consecutive months spent in negative territory.

Key to this recovery has been the much-anticipated improvement in sales, resulting in increased new orders, output, and employment figures.

David Owen, senior economist at S&P Global Market Intelligence, said the PMI print in April was better news for South African businesses as the second quarter began.

Owen said that a sustained decline in operating conditions across the first quarter suggested that GDP growth has softened, but early signs for the second quarter were more promising.

"Not only did demand conditions pick up, but supply-side conditions were healthier. Overall delivery times shortened for the first time in nearly two years and at the quickest pace since the end of 2018," Owen said.