Power cuts and a strike at Transnet prevented a stronger recovery, PMI survey says
01 November 2022 - 21:31
byBhargav Acharya
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SA’s manufacturing activity improved in October, but rolling power cuts and a crippling strike at freight rail and ports company Transnet prevented a stronger recovery, a survey showed on Tuesday.
The seasonally adjusted Absa purchasing managers index (PMI) was at 50.0 points in October from 48.2 points in September, hitting the 50-point mark that separates contraction from expansion.
“Exports remained poor amid the paralysing Transnet strike during the month, while global demand is faltering,” Absa said in a statement.
Workers at state-owned Transnet went on strike for nearly two weeks from October 6, throttling exports from Africa’s most industrialised nation.
PMI respondents said persistent power cuts by state power utility Eskom curtailed production and demand for their products.
In October, purchasing managers were at their most pessimistic about the outlook for business since May 2020, likely reflecting little hope that the power situation will improve soon, Absa said.
Electricity outages have reached record levels in SA this year.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SA’s factory activity improves in October
Power cuts and a strike at Transnet prevented a stronger recovery, PMI survey says
SA’s manufacturing activity improved in October, but rolling power cuts and a crippling strike at freight rail and ports company Transnet prevented a stronger recovery, a survey showed on Tuesday.
The seasonally adjusted Absa purchasing managers index (PMI) was at 50.0 points in October from 48.2 points in September, hitting the 50-point mark that separates contraction from expansion.
“Exports remained poor amid the paralysing Transnet strike during the month, while global demand is faltering,” Absa said in a statement.
Workers at state-owned Transnet went on strike for nearly two weeks from October 6, throttling exports from Africa’s most industrialised nation.
PMI respondents said persistent power cuts by state power utility Eskom curtailed production and demand for their products.
In October, purchasing managers were at their most pessimistic about the outlook for business since May 2020, likely reflecting little hope that the power situation will improve soon, Absa said.
Electricity outages have reached record levels in SA this year.
Reuters
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