The Absa Purchasing Managers Index (PMI) rose to 53.1 points in December from 52.6 points in November.
Despite the apparent growth, the underlying picture is more mixed.
Indeed, persistent electricity disruptions partly due to the breakdown of power stations have affected Africa’s most industrialized economy.
According to the official national statistics agency StatsSA, loadshedding, as it known locally, was a crucial contributor to the economy contracting by 0.7% in the second quarter of 2022.
The PMI index also warned of high likelihood of global supply chain disruptions due to an uptick in COVID-19 cases in China in the near-term.
The index compiled by the Bureau for Economic Research and sponsored by Absa, is based on the Purchasing Managers Index produced by the American Institute for Supply Management.
In September last year, South AFrica’s Central Bank said the economy was forecast to expand by 1.4% in 2023.