South Africa: PMI plummets in October
In October, the Standard Bank Purchasing Managers’ Index (PMI) declined 1.1 points to 46.9 points, falling further below the 50-point threshold that distinguishes deterioration from improvement in the South African private sector.
October’s reading was the worst in more than four years and reflected sharp declines in output and new orders as export demand continued to falter. Interestingly, employment rose for the first time in four months but was unable to prevent backlogs of work from accumulating. Firms’ selling prices jumped in the month as they felt the pinch from the weaker rand and higher fuel costs. For its part, business confidence ticked up from a month earlier on improving expectations for the short-term.