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

Sugar importers bitter about consumer prices
19/07/2019 - 10:57
Sugar importers want to know why the industry is subsidised to the extent that consumers are being forced to pay about double the world price.

Food and beverages giant PepsiCo makes offer to acquire Pioneer Foods
19/07/2019 - 10:18
In a vote of confidence about SA’s long-term prospects, New York-based food and beverages giant PepsiCo has made an offer to buy Pioneer Food Group, which makes Sasko breads and Ceres juices, in a deal worth at least R25.4bn.

US retail sales rise as households spend more
18/07/2019 - 14:16
US retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the hit on the economy from weak business investment.

Retail sales jump in May ahead of expected rate cuts
18/07/2019 - 09:24
South Africa’s retail sales rose more than expected in May as sales of household goods, furniture and appliances expanded quickly, a hint that pressure on consumers was easing ahead of an expected lending rate cut that may further support spending.

Cannabis investors may be in for an unpleasant surprise
16/07/2019 - 08:38
Cannabis investors banking on profitability in the second half of the year may have another thing coming: More losses at best, and maybe a surprise stack of write-downs.