Increased business conditions of the SA in June according to the PMI Standard Bank

Activity in the South African private sector edged up in June, with Standard Bank's Purchasing Managers Index (PMI) increasing slightly from 50.0 May at 50.9.

The latest data, released by Standard Bank and IHS Markit on Wednesday, indicate that business conditions have improved, with an increase in production in the second quarter of the year.

New business and employment have grown at a rapid pace.

Uptick

The index reflects a slight rise in the health of the South African private sector. Economic conditions have picked up at the fastest pace in three months, but the pace remains modest, according to the report.

Thanda Sithole, an economist at Standard Bank, said that the PMI was in line with expectations and that national economic conditions would improve. "Nevertheless, we recognize and will monitor the risks badociated with rising international oil prices, the continued weakness of the national currency, the ongoing debate over the expropriation of land alongside the EU. Standard Bank expects GDP growth of 1.7% for 2018 and 2.2% for 2019.

According to the report, June's highest PMI index was pulled by the index new orders, as a result of new business in the private sector.

The index rose from 50.6 to 51.3 .New projects also contributed to the expansion of orders, although the rate order book growth was modest.

The production index reached 50.9, after being below 50 for two consecutive months.

The index of l & # 39; employment, meanwhile, rose from 50.2 to 51.3

The inventory index of purchase is past under the 50 mark and weighed on the overall PMI index, said Sithole. top news in your mailbox: SUBSCRIBE TO NEWSLETTER FIN24