The Absa purchasing managers index (PMI) has finally breached the 50-point mark, indicating that the sector is set to grow in the coming months. The seasonally adjusted PMI rose by 0.9 points to 50.8 index points in February after a meaningful rise to 49.9 in January. The index is compiled by Stellenbosch University’s Bureau for Economic Research and gauges manufacturing activity. A score above 50 indicates an expanding manufacturing sector. Notably, it is the first time the index has risen above 50 since May 2017. Absa said on Thursday that the average for the first two months of 2018 was slightly above 50, which bodes well for the manufacturing sector. The index tracking expected business conditions in six months’ time rose to the highest level since 2001, surging to 79.1 points after solid increases in December and January. The index is now almost 30 points above November’s level. "The sustained rise in optimism is likely supported by continued positive global growth prospects. M...
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