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Private-sector business conditions improved in June

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But the latest IHS Markit SA purchasing managers’ index remains in negative terrain

Business conditions in the private sector improved as lockdown measures eased in June, rising off record lows in the previous month.

Although this was a marked improvement from May — when the index reported the lowest reading on record — the June PMI remained in contraction territory. The series measuring employment in the private sector continued to decline. This is not a good sign for SA, which reported record unemployment levels in the first quarter of this year — before the advent of the first phase of lockdown restrictions that halted most business activity.

 

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