Business activities in the private sector were broadly stagnant in August, according to the Stanbic IBTC Bank Purchasing Manager Index released on Monday.
The headline PMI moved up to 49.9 in August from 49.2 in July but remained just below the 50.0 no-change mark and signalled stagnation in overall operating conditions in line with the trend in business activity, which decreased fractionally for the second consecutive month.
Readings above 50.0 signal an improvement in business conditions compared to the previous month, while readings below 50.0 show deterioration.
“New orders returned to growth, the rate of expansion was only modest and insufficient to result in a rise in business activity, which fell fractionally. Employment continued to increase, however, as firms worked through outstanding business at a faster pace.
“Companies continued to contend with sharply rising input costs, with the rate of inflation quickening since July. In turn, firms increased their selling prices at a faster pace. Companies continued to contend with sharply rising input costs, with the rate of inflation quickening since July.”
