South African business activity and new sales orders are in decline

JOHANNESBURG – Eskom’s power cuts last month dampened the country’s manufacturing sentiment to the lowest in a decade, with the Absa Purchasing Managers’ Index (PMI) falling as business activity and new sales orders declined.

The seasonally adjusted index declined for a fourth consecutive month, to reach 44.3points in February from 45.2points in January.

A value above 50points indicates increased activity, and a value below 50points indicates decreased activity.

The index is compiled by the Bureau for Economic Research (BER) and sponsored by Absa.

The BER said the decline brought the index to the lowest level since the second half of 2009, when the economy started to recover from a deep recession triggered by the global financial crisis.