The IHS Markit South Africa PMI declined to 47.6 in December of 2019 from 48.6 in the previous month. This was the eight successive month of contraction in private activity and the steepest pace in 14 months, amid a sharp decline in output and further drops in new orders and exports orders attributed to load shedding and poor weather conditions. Consequently, both employment and purchases decreased further. In terms of prices, input price inflation accelerated at a modest pace, mainly due to higher prices in supplier and staff. Accordingly, output charges ticked up. Finally, the outlook for activity among firms strengthened in December, posting a degree of optimism that was slightly stronger than the average for 2019, still remained concerns that weakness in economic conditions will persist. Composite Pmi in South Africa averaged 49.69 from 2013 until 2019, reaching an all time high of 52.70 in October of 2014 and a record low of 46.40 in July of 2014. source: Markit Economics
Composite Pmi in South Africa is expected to be 49.60 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in South Africa to stand at 49.50 in 12 months time. In the long-term, the South Africa Standard Bank PMI is projected to trend around 50.20 in 2020, according to our econometric models.