South African Private Sector Logs Marginal Expansion

(RTTNews) - South Africa's private sector activity signaled weaker growth in August while experiencing softer cost pressures, survey results from S&P Global showed Wednesday.

The purchasing managers' index dropped to 50.1 in August from 50.3 in July. However, a score above 50.0 indicates expansion.

Among components, output increased for the first time in three months amid improving demand and the initiation of new projects.

Order book volumes increased in August, which was more evident in the domestic market as international sales fell for the fifth successive month due to challenging trading conditions, particularly with US clients due to higher tariffs.

The overall slight expansion in activity was supported by a moderation in input price inflation, which fell to a 10-month low amid a slight improvement in the rand's value against the US dollar. Meanwhile, selling price inflation was largely unchanged.

The survey revealed that there was a decline in manufacturing employment and an improvement in supply chains.