According to PMI, business activity in South Africa increased once more in May

According to a survey released on Wednesday, the private sector in South Africa expanded in May as new order volumes stabilized and company confidence increased.

The Purchasing Managers’ Index (PMI) for S&P Global South Africa increased marginally from 50.3 in April to 50.4 in May. A reading over 50 indicates expansion.

According to David Owen, senior economist at S&P Global Market Intelligence, “Firms seemed to prioritise building stocks in anticipation that sales would start to recover,” especially since other economic variables including supply chain constraints and load shedding (electricity shortages) are also stabilising.

According to Owen, many businesses are optimistic that demand will begin to increase after the election on May 29.

After losing its majority for the first time in last week’s election, the African National Congress—once led by Nelson Mandela—is under intense market scrutiny over its potential coalition partners for national governance.