According to the poll, which measures the health of the economy every month by talking to company leaders and purchasing managers, the Purchasing Managers’ Index fell to 51.2 in February from 53.2 in January. However, the private sector saw an increase in output and new orders despite the decline.
The indicator is still above the 50 mark, which indicates stability, while the figure below indicates a decline in growth.
While reports of extremely dry weather were the main inhibitor of growth during the month, the poll also showed a decline in employment for the first time in five months. According to Ms. Mulalo Madula, an economist at Standard Bank, the poll shows consistent economic performance over the past seven months.
“New orders continued to rise, supporting output, although the month continued to decline new export orders and increase input and output prices. Activity increased in the service sector, wholesale and retail, but decreased in agriculture, construction, and industry, ” she said.
“Businesses are optimistic that production will pick up over the next 12 months due to increased demand, lower inflationary pressures, and expected rainfall,” he added.
The study also pointed to an increase in input costs for things like electricity and water, which will be affected by commodity prices, which have risen for the 18th month in a row.
Costs increased in the wholesale, retail, and agricultural industries, but declined in the construction and service sectors, while supplier delivery times tripled in four months. The company took advantage of the rise in new orders at that time to boost purchasing activity, which grew for the fourth month.
However, the study found that business is still optimistic, with close to 68% of respondents predicting an increase supported by an increasing number of clients, easing inflationary pressures, and things to come.