{"id":758271,"date":"2024-03-07T13:12:46","date_gmt":"2024-03-07T11:12:46","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=758271"},"modified":"2024-03-07T13:12:51","modified_gmt":"2024-03-07T11:12:51","slug":"positive-turn-for-businesses-in-south-africa-but-the-big-three-problems-still-stand-in-the-way","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/758271\/positive-turn-for-businesses-in-south-africa-but-the-big-three-problems-still-stand-in-the-way\/","title":{"rendered":"Positive turn for businesses in South Africa – but the ‘big three’ problems still stand in the way"},"content":{"rendered":"\n

Sentiment within the South African private sector has improved – but the widespread problems at the nation’s ports, continued load shedding and crime and corruption continue to put a damper on things. <\/p>\n\n\n\n

The S&P Global South Africa Purchasing Managers\u2019 Index (PMI) – a snapshot of operating conditions in the private sector economy – climbed from 49.2 in January to 50.8 in February. <\/p>\n\n\n\n

This was the first time the index broke the neutral 50.0 level since August 2023. <\/p>\n\n\n\n

“The upturn in operating conditions came alongside a near stabilisation of new business volumes, following notable falls in each of the previous four months,” said S&P Global.<\/p>\n\n\n\n

“Some firms monitored by the survey signalled a pick-up in customer demand, although others commented that market activity was still subdued.” <\/p>\n\n\n\n

Sector data showed that service firms recorded growth, while there was a decline in industry, construction and wholesale & retail. <\/p>\n\n\n

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A stabler demand environment came amid a minor increase in selling prices, with the rate of inflation slowing down since December 2020. <\/p>\n\n\n\n

While firms generally passed the increased costs to consumers, others said that they were offering discounts due to excess stocks and to stimulate sales. <\/p>\n\n\n\n

There were also more positive trends in activity, employment, and inventories. <\/p>\n\n\n\n

Although total business activity may have fallen for the sixth month straight, the rate of contraction softened from January and was only slight. <\/p>\n\n\n\n

Anecdotal evidence did, however, show that greater load shedding and ongoing supply issues hindered output. <\/p>\n\n\n\n

The major public-private partnership led by President Cyril Ramaphosa and over 100 CEOs from South Africa’s biggest companies named load shedding<\/strong> and logistic issues<\/strong> as two of the three problem areas that need addressing to improve the economy, along with crime and corruption<\/strong>. <\/p>\n\n\n\n

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Private sector to the rescue<\/a><\/blockquote>