Advertise with fastmoving.co.za
 
 

The Absa PMI reached its best level in 2018 in December, which bodes well for the production figures.
The Absa PMI reached its best level in 2018 in December, which bodes well for the production figures.

Factory owners end 2018 in upbeat mood

ECONOMIC NEWS

By Sunita Menon - Jan 9th, 14:03

Activity in the manufacturing sector reached its best level in 2018 in December, ending the year on a strong note. 

The Absa purchasing managers index (PMI), which gauges activity in the manufacturing industry, rose from 49.5 in November to 50.7 points in December.

A score above 50 indicates expansion in the sector and December’s figures were driven by increases in three of the five subcomponents that track activity, demand and supplier performance.

The boost in demand saw the index climb above 50 for the first time since February. For the first time since July, respondents expect business conditions to improve in six months’ time.

Despite this, employment moved to its lowest level since 2014, while the inventories index fell below 50.

Manufacturing, which accounts for about 13% of GDP, had a strong start to the fourth quarter with growth of 3% in October.

However, employment subcomponent in the index has fallen to its lowest in three decades, with figures comparable to 1972, before the boom in the 1980s.

“Indeed, while the December survey results are encouraging, a sustained recovery in demand is required before a meaningful recovery in manufacturing output, investment and employment can take place,” Absa said in a statement.


Absa warned, however, that possible load-shedding from Eskom from mid-January could “depress the tentative signs of a recovery in the sector”.
Business Live 

Related News

South Africans are spending less on their weekly shopping trip
23/05/2019 - 09:44
Tiger Brands, which carries brands including Koo canned foods, All Gold, and Tastic rice, said that revenue from continuing operations fell 2% to R15.4 billion in the interim period.

Another recession in 2019 is probable, warns Old Mutual economist
22/05/2019 - 10:21
SA will probably enter another recession given the weak performance in the first quarter of 2019, Old Mutual Investment Group chief economist Johann Els warned.

US jealousy sparked trade wars, says Chinese ambassador
21/05/2019 - 10:48
The US is jealous of China’s rapid economic growth and achievements in the past few years and was using the trade wars to frustrate and stall it, Lin Songtian, the Chinese ambassador to SA said.

Technology makes end-to-end supply chain visibility and predictive analytics a reality
20/05/2019 - 09:31
Line of sight is the biggest challenge for all aspects of the supply chain, from the manufacturer to the wholesaler, distributor, and the reseller and even to the end consumer. This lack of visibility and resulting lack of control results in a number of issues, from stock losses to pricing inflation, uncertain availability and increased time to market.

Contraction in economy looms in the first quarter
17/05/2019 - 09:16
Weak performances in the retail, mining and manufacturing sectors, which bore the brunt of the most severe power cuts the country has experienced yet, indicates that the economy contracted in the first quarter of the year.