Absa PMI expands at slower pace in November

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded at a slower pace in November compared with the previous month as new sales dropped, a survey showed on Tuesday.

The index, a gauge of manufacturing activity in Africa’s most industrialised economy, fell to 52.6 points in November from 60.9 points in October, remaining above the 50-point mark that separates expansion from contraction.

“While still signalling an improvement in business conditions, the drop suggests that the manufacturing sector’s recovery is starting to lose momentum,” Absa said.

“It was worrying to see the new sales orders index dip back below the neutral 50-point mark for the first time since May,” Absa said, adding this was partly driven by a renewed decline in export sales possibly linked to lower activity in Europe due to renewed Covid-19 lockdowns.