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SA factory sentiment slips further into contraction

The PMI has been below 50, showing contraction, for all but two months of the year.
 

Sentiment in South Africa’s manufacturing industry slipped in November, signalling contraction in the industry for a fourth straight month.

Absa Group Ltd.’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, fell to 47.7 from 48.1 in October, the Johannesburg-based lender said in an emailed statement on Monday.

Key insights

  • The PMI has been below 50, showing contraction, for all but two months of the year. The industry accounts for about 13% of gross domestic product and the persistent poor confidence has damped growth in an economy stuck in its longest downward cycle since 1945.
  • The index tracking business activity slumped to 39.4, suggesting chances of a recovery in manufacturing are slim. New sales orders also dipped, with respondents seeing a decline in export activity, while the one tracking expected conditions in six months edged up, yet still below 50.
  • “The weak readings on the business activity index seen in the fourth quarter so far argue against a strong, if any, recovery in manufacturing output,” Absa says.

 

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No word from the Presidency and the “sterling work of his young lions”in turning the economy around with FDI? Just the usual bad, awful and terrible news?

A country without a significantly accomplished leader and no viable plans to get us out of this mess.

Sigh …

End of comments.

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