South Africa: PMI in October plummets to lowest level in over a year
November 5, 2015
The Standard Bank Purchasing Managers’ Index (PMI) fell from 47.9 in September to 47.5 in October, thus hitting the lowest level in over a year. As a result, the index fell slightly further below the 50-threshold, which separates expanding from contracting conditions in business activity.
October’s decrease mainly reflected a drop in manufacturing output amid a sharp decline in new business. Moreover, companies lowered their purchasing activity further in October. Analysts added that, “there was little appetite for companies to recruit new employees during October. Consequently, staffing levels fell further. The rate of job shedding was the most marked in 15 months, although slight overall. Meanwhile, backlogs of work fell modestly and average lead times improved fractionally.”
Author: Dirina Mançellari, Senior Economist