South Africa: Manufacturing PMI points to contraction in June
July 5, 2017
South African Manufacturing activity declined in June after expanding for nine consecutive months, the longest growth sequence in five years. The Standard Bank Purchasing Managers’ Index (PMI) dropped from 50.2 in May to 49.0 in June, an over one-year low.
June’s print reflects a decline in new orders, employment and stock of purchases. Overall manufacturing activity was dragged down by a drop in new business which declined for the first time since October 2016. Spare capacity in the country’s manufacturing sector was evident as outstanding business declined at the steepest rate in a year. Firms shed employees as work volumes were insufficient and purchasing operations were curtailed. Regarding the latest price trend, input costs and output prices rose at the fastest rate in months but were weak nonetheless.