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.