David Owen, Senior Economist at S&P Global Market Intelligence, said:
“The South Africa PMI swung back above the 50.0 no- change mark in February, pointing to the first improvement in operating conditions across the private sector since August last year. This was largely due to an improving sales trend, which whilst neutral, was better than the solid declines seen recently.
“Survey evidence suggests that the cooling inflation environment has been a major factor in helping to revive markets. With output charge inflation at its lowest for over three years and below the long-run trend, firms indicated that price pressures were less of a worry for customers and that demand was starting to pick up, especially in services.
“Companies were also encouraged to expand their employment levels, and boost their purchases of inputs for the first time in six months. These upturns followed a stronger degree of confidence in future activity, with nearly half of businesses expecting growth over the year ahead.
