SA’s private sector business activity was largely stable in December, with business confidence under some pressure from Covid-19, which is also disrupting supply chains, a survey showed on Wednesday.
The PMI gives insight into private sector business performance, through a survey of about 400 private sector companies. A reading of more than 50 shows overall improvement in the sector, with the figure derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
“Notably, business confidence was hit by firms’ concerns that a sharp rise in Covid-19 cases could lead to a second wave of restrictions,” he said. There were reports that firms were hindered by shortages of a range of raw materials, largely due to Covid-19 and its effect on global supply chains. Shortages of inputs also affect companies’ buying decisions in December, the statement said, and purchasing activity declined for the first time since August.
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Private sector business conditions little changed in DecemberThe latest IHS Markit SA PMI shows output was broadly stable, but fears of further Covid-19 restrictions weighed heavily
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