JOHANNESBURG, Dec 3 (Reuters) – South Africa’s rand was stable on Wednesday after the release of a purchasing managers’ index dealing with business conditions, while global investors keep tabs on key U.S.
data before the Federal Reserve’s interest rate decision next week.
At 1203 GMT, the rand traded at 17.0750 against the dollar, up roughly 0.2% on Tuesday’s close.
South Africa’s private sector activity contracted for the second consecutive month in November driven by sustained falls in output and new business volumes, an S&P Global survey showed on Wednesday.
The Purchasing Managers’ Index (PMI) inched up to 49.0 from 48.8 in October, but remained below the 50.0 threshold that separates growth from contraction.
At the same time, price pressures intensified, as firms faced the sharpest rise in input costs in over a year, prompting them to raise output charges at the fastest pace since February.
Africa’s largest economy has mostly reported softer economic data this week, including slower third-quarter economic growth, a disappointing manufacturing survey, weaker-than-expected vehicle sales figures for November and an increase in fuel prices for December.
The focus will shift to third-quarter current account data on Thursday and foreign reserves numbers on Friday.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.1%.
South Africa’s benchmark 2035 government bond was stronger as the yield fell 11.5 basis points to 8.315%.
(Reporting by Sfundo Parakozov and Anathi Madubela; editing by Andrew Heavens and Mark Heinrich)
