First PMI increase in three months shows green shoots for SA’s manufacturing sector
The purchasing managers index has reached its highest level since July 2018
As manufacturing looks set to boost GDP in the third quarter, a survey has showed that factory owners are more upbeat about the sector. The Absa purchasing managers index (PMI), which gauges activity in the manufacturing sector, rose to 49.5 from 42.4 in October. This the highest level the index has reached since July 2018. The monthly survey, which was released on Monday, tends to be a good predictor of the manufacturing production and sales figures that Statistics SA provides about two months later. A figure below 50 indicates contraction in the sector. This comes the day before the third-quarter GDP figures are set to be released by Statistics SA. Many economists are in agreement that SA will emerge from its first recession since the global financial crisis. All of the analysts polled by Bloomberg predict that figures released on Tuesday will show that GDP rose. However, growth is still expected to remain lacklustre for the year. The Treasury expects benign growth of 0.7% while t...
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