People work at ''The Faktory", a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko
JOHANNESBURG, March 3 - South African private sector activity stabilised in February after a sharp dropThe S&P Global South Africa Purchasing Managers' Index rose to 50.5 in February from 48.7 in January. A reading above 50 reflects growth. "The latest South Africa PMI helped to allay fears of a renewed downturn in the private sector economy, after a rocky start to the year saw the headline index hit a 13-month low," said David Owen, senior economist at S&P Global Market Intelligence.
"However, while output levels stabilised in February, they did so after contracting at a solid pace," Owen added. Surveyed firms reported a slight recovery in purchasing levels, but the outlook for future activity worsened further and firms cut employment for the first time in a year, the PMI showed.