South Africa: PMI increases in December
January 5, 2017
The Standard Bank Purchasing Managers’ Index (PMI) inched up from 50.8 in November to 51.6 in December, which marked the highest reading since March 2015. The index moved further above the 50-threshold which separates expanding from contracting conditions in business activity.
December’s figure reflects improvements in manufacturing output due to a rebound in new orders. Moreover, employment improved in December and stocks of purchases expanded. Analysts added that “the upswing in economic activity was sustained in December, supporting the suggestion that South African growth may have troughed. However, the survey also provides evidence that those sectors reliant on exports are under pressure, perhaps as a result of the USDZAR exchange rate staying below 15.00.”
Author: Dirina Mançellari, Senior Economist