Inventories index at highest level in 13 years as demand improves

JOHANNESBURG – The inventories index rose to its highest level in 13 years, boosting business activity in South Africa above pre-Covid-19 levels in October on improved demand following the further easing of the lockdown restrictions in September.

The Absa Purchasing Managers’ Index (PMI) released yesterday rose to a solid 60.9 points in October from a revised 58.5 points in September.

The PMI, an economic activity index based on a survey conducted by the Bureau for Economic Research and sponsored by Absa, remained well above the 50-point mark that separates expansion from contraction.

The reading pointed to the third consecutive month of expansion in factory activity and the quickest pace on record as business activity, new sales and inventories increased.

Absa said a big driver of the increase was the inventories index.