Manufacturing
PMI remains at sub-50 level
South Africa’s purchasing managers’ index (PMI) was unchanged last month, remaining at its weakest level since April last year as business activity and new sales orders weakened, a survey showed yesterday. Data from PMI sponsor Kagiso Tiso Holdings showed the index started the year at 49.9, its second consecutive month below the 50-point mark. However, manufacturers were optimistic that the weak rand could boost exports. “Given that local demand is likely to remain relatively weak, manufacturers may be expecting a boost to exports due to improved demand from the euro zone and a possible competitive edge from the weak rand,” Abdul Davids, the head of research at Kagiso Asset Management, said. – Reuters
Public Works
Ministry sues businessman
The Public Works Department was suing a businessman and two former employees to recover R8 million of the R40m they allegedly defrauded from it, the ministry said yesterday. It filed lawsuits against businessman Sayed Hoosen Mia and former officials Desmond Simamane and Thabo Moagi, accusing them of defrauding the government of more than R40m through a lease scam. “We have recovered most of the money… so far, where contracts were terminated and monies paid back. The department is looking to recover R8m from the three,” spokesman Phillip Masilo said. – Sapa
Aviation
SAA ‘back on path to profit’
SAA would return to profitability, Public Enterprises Minister Malusi Gigaba said yesterday. “Last year, we said we expected… the airline will continue to make losses over the next three to five years,” he said at The New Age briefing in Johannesburg. “But we will turn the corner as we move to improve and ensure that the turnaround strategy is implemented.” SAA suffered a loss of R900 million in 2012/13, it was announced last week. – Sapa
Energy
Diesel hike to hurt business
The 24c a litre increase in the diesel price would do more damage than the 39c a litre petrol hike, the Cape Chamber of Commerce and Industry said yesterday. “Business is particularly concerned because diesel is a basic input cost for agriculture and transport,” president Janine Myburgh said. “It affects the price of every item of food in the supermarket.” – Sapa