South Africa: PMI moderates further in May
June 5, 2015
The HSBC Purchasing Managers’ Index (PMI) inched down from 51.50 in April to 50.10 in May. As a result, the index rests just above the 50-threshold, which separates expanding from contracting conditions in business activity.
May’s slight moderation came on the back of a decrease in manufacturing output, mainly due to power outages and a lack of demand. The drop in output was the first since January. Nevertheless, total new businesses recorded an increase in May. In addition, HSBS added that, “survey respondents partly blamed ongoing power outages for the drop in activity. Another worry is the substantial decline in new export orders, which decreased at the second-strongest rate in the survey’s history despite the relatively weak rand.”
Author: Dirina Mançellari, Senior Economist