Absa PMI extends recovery in September

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) recovered further in September as easing of lockdown restrictions continued to boost business activity and new sales, a survey showed on Thursday.

The index, which gauges manufacturing activity in Africa’s most industrialised economy, rose to 58.3 points in September from 57.3 points in August, well above the 50-point mark that separates expansion from contraction.

“Although the headline PMI also improved on a quarter-on-quarter basis, the increase in the business activity component is more pronounced and probably better reflects the pure output dynamics at this stage,” Absa said in a statement.

South Africa imposed a strict coronavirus lockdown at the end of March, squeezing businesses and consumers, and economic output recorded its largest contraction ever in the second quarter.

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Source: moneyweb.co.za