SA’s economy could remain in the doldrums, survey shows
By Sunita Menon - Oct 5th 2018, 10:20
The Standard Bank PMI remained in contractionary territory for a third consecutive month.
Private-sector activity has remained subdued, indicating that the economy remained weak in the third quarter.
The Standard Bank purchasing managers index (PMI) showed that domestic business conditions improved slightly in September to 48 after dropping to a 29-month low of 47.2 in August.
The index looks at the whole economy and a score below 50 and indicates a contraction in business conditions. This is the third consecutive month of deterioration.
The PMI decline was broad-based as new orders, output, employment and inventories fell further. However, Standard Bank said the index was likely to improve as President Cyril Ramaphosa’s economic stimulus plan took hold.
“The recent improvements in the Mining Charter together with President Ramaphosa’s economic stimulus plan — which includes, among others, plans to reduce cost of doing business — should boost business confidence and investment and economic growth over the medium term,” Standard Bank economist Thanda Sithole said.
The Absa PMI, which measures sentiment in the manufacturing sector, also pointed to a weak economy in the third quarter. The index dipped to its lowest level in just over a year, slipping to 43.2 points in September from 43.4 in August.
This comes after the shock second-quarter GDP figures, which indicated that SA had entered a recession. The latest data has indicated that SA will continue to falter in the third quarter.Business Live
Is Woolworths unravelling in Australia?
15/02/2019 - 16:35
The sudden departure of two Australia-based nonexecutive directors of Woolworths has fuelled speculation that the troubled retailer will be forced to announce another huge write-down related to the R21bn acquisition of the David Jones department store.
Booze, drugs and DIY boost Spar in difficult economy
13/02/2019 - 15:40
Robust liquor sales and the inclusion of the pharmaceutical distribution business it bought in 2018 year boosted grocery retailer Spar Group in the weeks leading up to Christmas.
Pick n Pay trials a R5 reusable bag – made from green plastic bottles
13/02/2019 - 13:38
Pick n Pay is trialling the lowest priced reusable bag yet in South Africa, as an affordable reusable alternative to plastic carrier bags.
IoT offers fast, effective control of every business resource
12/02/2019 - 22:51
Internet of Things (IoT) continues to make inroads into South African industries, and it is not difficult to see why. The fact is that with IoT, businesses will always know where everything is, they will be able to keep track of even more data, everything will be faster and remote work will be even more feasible. Another fact is that challenges associated with this technology, like security, connectivity and a sound business plan, are largely being addressed.
Toys R Us makes a comeback as Tru Kids Brands
12/02/2019 - 19:17
Toys R Us is making a comeback as a brand new company known as Tru Kids Brands, one year after the toy retailer went bust.