Activity in the manufacturing sector picked up for the first time in three months as load-shedding abated in April. The seasonally adjusted Absa purchasing managers’ index (PMI) rose by 2.2 points to reach 47.2 index points in April. The index gauges activity in the manufacturing sector which accounts for about 13% of GDP. Despite the increase, the PMI remains below the 50-point mark, which indicates a contraction. This is in line with the average recorded in the first quarter of 2019 indicating that activity remained at a fairly depressed level at the start of the second quarter. “The lack of load-shedding during the month may have supported the slight improvement in sentiment,” Absa said in a statement on Thursday. The purchasing price index declined slightly compared to March. The deceleration in cost increases may have been supported by the slightly stronger rand exchange rate. Brent crude oil prices, however, rose during the month. Fortunately, the rise in international diesel ...
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