ACTIVITY in the manufacturing sector improved in September but remained below desired levels, suggesting that output in the sector is under pressure and unlikely to support economic growth in the third quarter.The seasonally adjusted Barclays purchasing managers index (PMI), compiled by Stellenbosch University’s research institute the Bureau for Economic Research, rose by 3.2 points to 49.5 index points in September. A reading below 50 suggests a contraction in manufacturing activity.The average for the third quarter was also below 50, and was well below the second quarter average, suggesting a slowdown in actual quarter-on-quarter manufacturing production growth after a solid performance in the second quarter, Barclays Africa economists said.Although four out of the five main PMI subcomponents increased in September, only the business activity and suppliers’ performance indices rose above 50 points.The new sales orders continued to point to subdued demand.The inventories index rose...
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