South Africa's private sector activity at 19-month high

PUBLISHED: Mon, 05 Dec 2016 07:40:09 GMT

Activity in South Africa’s private sector inched up to a 19-month high in November, as new orders and output rose, a survey showed on Monday.

The Standard Bank Purchasing Managers’ Index (PMI), compiled by Markit, rose to 50.8 from 50.5 in October, remaining above the 50 mark dividing expansion from contraction.

The latest PMI reading was the best since April 2015.

“November data signalled a continuation of the economic upturn in South Africa that started in September,” Markit said.

“With new business rising and backlogs of work increasing for the first time in two years, companies raised their employment and output levels again during the latest survey period.”

South African firms have struggled to stay viable as the economy struggles, with the Treasury forecasting growth of 0.5 percent this year.

The economy has also struggled to create new jobs, leaving South Africa saddled with a chronically high unemployment rate of 27.1 percent of the labour force.

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