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Business activity grew in January as Omicron wave receded

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IHS Markit’s PMI rose to 50.9 in January, slightly back above the 50 neutral mark into expansionary territory

Private-sector activity rose slightly in SA in January as the Omicron wave of Covid-19 cases receded, lifting demand and stabilising new business, a survey showed on Thursday.

“The latest PMI data suggested an improvement in demand conditions in SA during January, as the Omicron wave of Covid-19 receded and clients began to spend again,” said David Owen, economist at IHS Markit. Looking ahead, Owen added that business optimism was strengthened by hopes that the economy will cope well with any future waves of the pandemic, particularly as hospitalisations and deaths were much lower with the Omicron variant in spite of minimal government measures.

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