South Africa PMI July 2017

South Africa

South Africa: Manufacturing PMI points to a soft expansion in July

August 3, 2017

South African Manufacturing activity expanded in July after falling into contractionary territory in June for the first time in nine months. The Standard Bank Purchasing Managers’ Index (PMI) rose from June’s over one-year low of 49.0 to 50.1 in July. Despite pointing to a soft expansion, the print came in below the six-year long-run survey average of 50.7 and marked the second-lowest expansion in 11 months.

July’s print reflects growth in business, employment and stock of purchases. Manufacturing output declined at a softer pace in the surveyed-month and dropped despite rising new work. On the contrary, staffing levels increased in the surveyed month after declining in June for the first time in a year. Higher employment contributed to reducing backlogs of work for the second consecutive month. Regarding the latest price trends, output prices recorded its strongest increase in six month though they remained below the six-year long-run survey average.

FocusEconomics Consensus Forecast panelists see investment falling 2.0% in 2017, which is down 1.2 percentage points from last month’s estimate. For 2018, the panel expects investment to increase 1.5%.

Author: Jean-Philippe Pourcelot, Economist

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South Africa PMI Chart

South Africa PMI July 2017 0

Note: Standard Bank Purchasing Managers’ Index. Readings above 50 indicate an improvement in business conditions while readings below 50 point to a deterioration.
Source: Standard Bank

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