South Africa: PMI moderates slightly in December
December 3, 2015
The Standard Bank Purchasing Managers’ Index (PMI) dropped from 49.6 in November to 49.1 in December. The previous month’s figure had marked a six-month high. As a result of the drop, the index is now further below the 50-threshold, which separates expanding from contracting conditions in business activity.
December’s deterioration mainly reflected that output in the private sector dropped at a sharper rate compared to the previous month amid a decline in new business. Moreover, employment decreased and companies lowered their buying activity again in December. Analysts added that, “Subdued demand remained one of the main reasons for companies to reduce their buying activity in December. Lower input buying in turn contributed to a further reduction in pre-production inventories.”
Author: Dirina Mançellari, Senior Economist