South Africa’s Absa PMI remains in contraction in September
PHOTO: Supplied by Absa Group.
JOHANNESBURG – South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September, weighed down by a fall in new sales orders and employment, a survey showed on Monday.
The index, which is compiled by the Bureau for Economic Research and gauges manufacturing activity in Africa’s most industrialised economy, was at 43.2 in September from 43.4 in August, staying below the 50-mark separating contraction from expansion.
The index fell to a 13-month low in August.
“As respondents still noted an improvement in export orders, the weakness is more than likely driven by poor domestic demand conditions, including from the South African mining and retail sectors,” Absa said in a statement.
“The employment index lost further ground in September and is now at its lowest level in more than four years.”
Q3 2018 PMI at 46 (43.2 for Sept 2018)
High frequency data from StatsSA suggest a recovery from recession but growth will remain weak.
Persistent low employment and domestic sales order indices are concerning.#ABSAPmi— Heinrich Krogman (@Heinrich_TCG) October 1, 2018
– REUTERS
Source: iol.co.za
