Advertise with fastmoving.co.za
 
 

After briefly turning optimistic in February, South African factory managers were back on the pessimistic side of the monthly manufacturing purchasing managers index (PMI), Absa reported.
After briefly turning optimistic in February, South African factory managers were back on the pessimistic side of the monthly manufacturing purchasing managers index (PMI), Absa reported.

South African manufacturers turn gloomy again

ECONOMIC NEWS

By Robert Laing - Apr 3rd 2018, 18:34

After briefly turning optimistic in February, South African factory managers were back on the pessimistic side of the monthly manufacturing purchasing managers index (PMI), Absa reported on Tuesday. 

March’s PMI fell 3.9 points to 46.9 points, from February’s 50.8 points.

February marked the first time the index had been on the optimistic side of 50 points since May 2017.

The monthly poll of factory managers by Stellenbosch University’s Bureau of Economic Research (BER) tends to be a good forecaster of the manufacturing output and sales data Stats SA releases about two months later.

A score above 50 indicates SA’s manufacturing sector is expanding, and below 50 that it is contracting.

One of the components of the index that dragged it back under 50 in March was business activity, which fell 8.1 points to 46 in March from 54.1 in February.

Another sharp drop, of 8.2 points, was recorded by new sales orders, taking it down to 44.5 in March from 52.7 in February.

"Respondents indicated that exports declined during the month, which could explain the deterioration in overall sales orders. Exports could be affected by the stronger rand exchange rate of late, which can weigh on competitiveness of local goods in international markets. The dip in demand, in turn, filtered through to lower activity levels," the report said.

© BusinessLIVE MMXVIII 

Related News

Inflation eases even more than expected
21/08/2019 - 10:36
Inflation eased more than expected to 4% in July.

Survivor crowned 2019 ABSA Top Ten Pinotage
15/08/2019 - 11:25
Survivor, the unbridled Swartland wine range, has been recognised as one of South Africa’s top Pinotage producers making the cut in the prestigious 2019 ABSA Top Ten Competition.

We need to rethink our food system to tackle climate change
15/08/2019 - 09:19
The way we produce, consume and discard food is no longer sustainable.

Crackdown on informal traders will hurt economy, says refugee forum
13/08/2019 - 09:40
SA’s embattled economy could be strained further if the crackdown on informal traders continues unabated, the African Diaspora Forum (ADF) warns.

Retail boost could steer SA away from a recession
12/08/2019 - 12:37
A rebound in economic growth in the second quarter of the year will likely see SA avert its second recession in two years.