SA’s factories in the spotlight
Factory bosses are expected to have become slightly less pessimistic in October, but not enough to stop the manufacturing sector contracting
The health of South African factories will be in the spotlight on Thursday, with four manufacturing-related economic releases diarised. November kicks off with Absa releasing October’s manufacturing purchasing managers’ index (PMI), done by the Bureau of Economic Research, and the National Association of Automobile Manufacturers of SA (Naamsa) releasing October’s new vehicle sales figures. Stats SA is scheduled to release August manufacturing utilisation figures at 11.30am and September’s electricity consumption and generation figures at 1pm.
A PMI score under 50 indicates a shrinking manufacturing sector. Hopes of recovery in SA’s factories was raised in February, April and July by scores above 50, only to be dashed with a plummet to 43.4 points in August. Investec Bank economist Lara Hodes said in her weekly note she expects a small rise from September’s 43.2 points to about 44.5 points. “September’s PMI reading is reflective of a weak economy, operating against a backdrop o...
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