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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.
Image: Shutterstock
 

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.

 

© 2019 Bloomberg L.P.

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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 …

Jaaaaa Boet. Sigh……

End of comments.

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