South African business activity increases in April, the PMI shows

Activity in South Africa’s private sector increased slightly in April as improved business confidence prompted them to increase purchasing and headcount, a survey showed on Monday.

The S&P Global South Africa Purchasing Managers’ Index (PMI) rose to 50.3 in April from 48.4 in March, the highest level since February. A value above 50 indicates growth.

Business confidence received a boost from fewer power outages in April and a smaller decline in the number of new orders.

“Some of the headwinds that have held back the private sector recently showed signs of easing in April, with a reduction in power outages (power outages) and a lesser degree of supply chain delays,” said Andrew Harker, chief economics officer at S&P Global Market . Intelligence.

Some companies expect demand to improve after the May 29 general election, Harker added.

South Africa got through the month of April without a single day of power cuts from the national electricity company Eskom.

Eskom said last month it was likely to limit power outages during the winter months as the outlook for its power station fleet had improved.