JOHANNESBURG (Reuters) – South African non-public sector activity expanded for the first time in 18 months in October as an easing of coronavirus restrictions continued to spice up output and new gross sales, a survey confirmed on Wednesday.
IHS Markit’s Purchasing Managers’ Index (PMI) rose to 51.0 in October from 49.4 in September, again above the 50 stage that separates enlargement from contraction for the first time since April 2019.
“Central to the improvement in overall business conditions were increases in both new orders and output,” IHS Markit stated.
In mid-September President Cyril Ramaphosa additional loosened what had been one of many world’s strictest lockdowns on the top of South Africa’s Covid-19 outbreak, squeezing companies and pushing the economic system right into a report contraction.
The output index — at 51.5 in October — rose for the fifth month working from May’s report low of twenty-two.8. IHS Markit stated that the place activity elevated, corporations usually linked the rise to the comfort of Covid-19 restrictions and a subsequent rise in new orders.
The new orders index rose to 51.7 in October from 48.5 in September.
IHS Markit economics director Andrew Harker stated the most recent knowledge advised that gross home product might develop once more throughout the ultimate three months of 2020, following an anticipated ‘mechanical’ rebound in the third quarter.
“That said, caution is provided by the situation in other parts of the world where a second wave of the virus has occurred,” Harker added. “South Africa will therefore need to keep Covid-19 suppressed if the current recovery is to be sustained.”