According to the S&P Global South Africa PMI, there was a slight increase in private sector activity in April as a result of higher business confidence, which led to increased hiring and purchasing. It reached its best level since February, from 48.4 in March to 50.3, signifying growth above 50.
The boost in sentiment stemmed from reduced power cuts and a lesser decline in new orders. Economics director at S&P Global Market Intelligence Andrew Harker reported lessening challenges, crediting the improvement to less supply-chain delays and load shedding.
A few businesses are expecting a spike in demand on May 29, the day of the federal elections. Eskom, the state electricity company, reported better prospects for its power plant fleet during the winter months, which allowed it to completely avoid power outages during April. Furthermore, the South African rand was up 0.3% from the previous close against the dollar, indicating a favourable trend in private sector activity.
The Top-40 and larger all-share indexes both saw early trade increases of roughly 0.7%. Additionally, the benchmark 2030 government bond for South Africa gained momentum, resulting in a 2 basis point decrease in yield to 10.585%.
