South Africa: PMI improves slightly in January
February 3, 2016
The Standard Bank Purchasing Managers’ Index (PMI) rose from 49.1 in December to 49.6 in January. As a result of the increase, the index is now closer to the 50-threshold, which separates expanding from contracting conditions in business activity.
January’s improvement mainly reflected that output in the private sector dropped at a weaker rate compared to the previous month. Moreover, employment decreased at a marginal rate in January. Analysts added that, “we expect the weak currency will start to have a positive effect on those industries which are import substituting, and may result in the PMI gaining ground later in the year.”
Author: Dirina Mançellari, Senior Economist