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South Africa's private sector contracts in June

South Africa's private sector contracts in June

South Africa

Activity in South Africa’s private sector fell to its lowest in 14 months in June as employment, output and new orders slipped, a survey showed on Wednesday.

The Standard Bank South Africa Purchasing Managers’ Index dropped to 49.0 in June from 50.2 in May.

Any reading below 50 suggests contraction, while a reading above 50 indicates expansion in the sector, as the Business Insider reports.

Among components, output, new orders, employment and stocks of purchases all registered declines in June.

On the price front, inflationary pressures in the private sector remained weak in June, despite strengthening slightly compared with May.

Political instability, high unemployment and credit-rating downgrades have hit business and consumer confidence in South Africa, which entered recession for the first time in eight years in the first quarter.

Unemployment in South Africa is at a 14-year high of 27.7 percent.

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