Private-sector business activity nosedived in April in the face of the full coronavirus lockdown that brought the economy to a near halt during the month.
Depending on the severity and length of the lockdown research done for the Treasury suggests the SA economy could shrink anywhere between 5.6% and 16%. The SA Revenue Service has estimated that this could leave the state with a R285bn revenue shortfall. “The plunge in the SA PMI was testament to the impact that the nationwide lockdown has had on the economy,” Owen said.
“However, even this figure does not illustrate the strain of businesses reporting lower output. With the lockdown in place, many firms simply shut down operations, rather than partially reducing output,” he said But other important subindices, notably business activity and new sales orders, crashed to record lows, suggesting manufacturing activity all but halted during April.