PURCHASING MANAGERS INDEX
Experts remain pessimistic about manufacturing
Manufacturing production is unlikely to contribute meaningfully to economic growth this quarter
Although factory managers were upbeat about their performance in November, experts say such output was unlikely to contribute meaningfully to economic growth this quarter. The Barclays-sponsored purchasing managers index reversed October’s losses in November and rose 2.4 points to 48.3, data compiled by the Bureau for Economic Research showed on Thursday. Three of six subindices rose and the PMI leading indicator edged up, as new sales orders outpaced inventories. This signalled that production could lift in coming months. Investec economist Kamilla Kaplan said actual manufacturing production in the fourth quarter will not recover "meaningfully" from the 1.3% quarter-on-quarter seasonally adjusted contraction in the third quarter.
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