Despite the global purchasing manufacturers index (PMI) reaching a seven-year high in December, SA's manufacturing sector showed a surprising decline. After four months of gains, the Absa PMI fell as a result of a broad-based decline across all the major subindices. The index, which gauges manufacturing activity, fell to 44.9 from 48.6 in November. But despite the overall drop, respondents appear to be more upbeat about the outlook for the sector.  The subindex tracking expected business conditions increased to 61.9 from 50 in November. Based on that, Absa says the industry could be poised for a better performance in 2018, barring any adverse shocks. Absa economist Miyelani Maluleke takes Business Day TV through the lender's PMI results. OR LISTEN TO THE AUDIO:

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