South Africa IHS Markit PMI2013-2021 Data | 2022-2023 Forecast | Calendar

The IHS Markit South Africa PMI increased to 49.9 in August of 2021 from an 11-month low of 46.1 in July when unrest and COVID-19 lockdown measures hurt the private sector sharply. The August reading signalled a broad stabilisation of operating conditions in the private sector economy. Whilst demand levels remained weak for some companies, others saw new business recover as lockdown eased and client confidence strengthened. Raw material shortages remained severe, however, driving backlogs higher and contributing to further supplier delays. As a result, input prices and output charges continued to rise sharply, although rates of inflation eased for the third month running.

The IHS Markit South Africa PMI fell to 46.1 in July of 2021 from 51 in June, pointing to the first contraction in the country's private sector activity in ten months, amid civil unrest and Level 4 COVID-19 restrictions. Output, new orders, stocks of purchases and employment fell sharply. Supply chains were also impacted by unrest, as lead times lengthened at a much faster rate than in June. On the price front, Input prices continued to rise strongly, though the pace of inflation eased to a four-month low. Consequently, the rate of output charge inflation also softened to a four-month low. Looking forward, business sentiment weakened again in July, and was the lowest seen for almost a year.

The IHS Markit South Africa PMI fell to 51 in June of of 2021 from 53.2 in the previous month. The latest reading pointed to the ninth straight month of expansion in South Africa's private sector activity but at the softest pace since March. Output fell for the first time this year and growth in new orders stalled, as the reintroduction of stricter lockdown measures during June hit costumer demand. Also, there was a renewed drop in export sales. Meanwhile, raw material shortages led to a solid increase in backlogs, which prompted firms to raise employment at the quickest rate since November 2012. On the price front,input prices rose at a marked pace in June, although the overall rate of inflation eased slightly from May’s recent high. Output charges continued to rise sharply as firms often passed these costs onto their customers. Finally, business confidence eased for the second straight month as concerns grew that COVID-19 restrictions would harm economic activity in the near future.

The IHS Markit South Africa PMI edged down to 53.2 in May of 2021 from a record high of 53.7 in April, but still signalling the South African economy continued to grow at a solid pace. New orders rose for the second month in a row, supporting a further solid increase in workforce numbers. Also, output grew at the second-quickest rate since October 2014. However, the headwind of rising cost pressures continued to gather speed, with the latest uptick in input costs the fastest since June 2016 amid supply-side problems. As a result, firms raised their selling charges at the sharpest pace for almost five years. Finally, confidence towards future output remained robust in May, and was the second-highest in over three years. Firms were largely expectant of a recovery in economic conditions over the coming year as the vaccine roll-out continues. With this in mind, workforce numbers increased at the fastest rate since November 2012.