[Johannesburg 3rd Reuters]-South Africa's Private Purchasing Managers' Index (PMI) in September announced by IHS Markit was 49.2, below the 50th mark for the fifth straight month.
New orders and production decreased. The corporate mind has also cooled.
Last month was 49.7. New orders declined for 15 consecutive months.
IHS Markit economist David Owen pointed out, “Some companies were hit by riots in September. PMI shows a further deterioration in the private economy.”
In the country, riots and looting continued in Johannesburg and Pretoria in September. Targeted mainly by foreigners and foreign-owned stores, 15 people died and more than 400 were arrested.
South Africa's economic growth this year is expected to be less than 1%, and the risk of downgrades is increasing.
“Our third-quarter PMI averaged 49.1, the lowest this year. Third-quarter gross domestic product (GDP) will grow modestly at best,” Owen said. Indicated.
