JOHANNESBURG – Activity in South Africa’s private sector rose in December, bolstered by higher output and new orders, a survey showed on Thursday.
The Standard Bank Purchasing Managers’ Index (PMI), compiled by Markit, rose to 51.6 from 50.8 in November, remaining above the 50 mark dividing expansion from contraction.
“The overall upturn was bolstered by faster expansions of output and new work in December. Both rose to the greatest extent in 21 months, with anecdotal evidence highlighting a general improvement in client demand,” Markit said.
“That said, growth of total new work was dampened by falling exports. The amount of new orders from abroad dropped for the second straight month, despite reports of orders from Russia and
some African economies.”
South African companies have struggled to stay viable as the economy struggles, with the Treasury forecasting growth of 0.5 percent for 2015.