Absa PMI expands at faster pace in February

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded at a faster pace in February compared with January, supported by an increase in new sales and business activity, a survey showed on Monday.

The index, a gauge of manufacturing activity in Africa’s most industrialised economy, rose to 53.0 points in February from 50.9 points in January, remaining above the 50-point mark that separates expansion from contraction.

“The most encouraging outcome of the February survey was a continued improvement in new sales orders. … The improvement was supported by better export sales relative to the previous month, while the loosening of local lockdown restrictions likely also contributed to an uptick in domestic demand,” Absa said in a statement.

“The improvement in orders supported an increase in the business activity index.”