JOHANNESBURG, Aug 5 Reuters South African private sector activity remained subdued in July amid weaker sales and increased supplyside pressures, a survey showed on Monday.

The SP Global South Africa Purchasing Managers39; Index PMI rose slightly to 49.3 in July from 49.2 in June, but remained below the 50 level which marks growth for the second month in a row.

South Africa39;s private sector saw new orders continuing to decline and supplier performance worsening as global transport issues and domestic port congestion hindered vendors, said David Owen, senior economist at SP Global Market Intelligence.

This forced businesses to cut their output at the sharpest rate in four months.

South Africa39;s logistics firm Transnet suspended operations at some of its ports in July as strong winds and waves lashed parts of the country, setting back efforts to clear backlogs.

However, firms were upbeat that conditions would improve in the coming 12 months, Owen said.

Many suggested that the stabilisation in the political landscape should lead to greater confidence and a pickup in spending, while reduced load shedding power cuts and softer price pressures are also expected to support growth, Owen added.

Reporting by Tannur Anders; Editing by Susan Fenton

Source Reuters