South Africa: PMI remains in expansionary territory in October
November 4, 2016
The Standard Bank Purchasing Managers’ Index (PMI) inched down from 50.7 in September, which had marked the highest level in over a year, to 50.5 in October. Despite the drop, the index remains above the 50-threshold which separates expanding from contracting conditions in business activity.
October’s figure signals an improvement in operating conditions for the second consecutive month, despite the drop in the index, which was caused by a marginal decrease in new businesses. In October, output and employment expanded and companies were in general encouraged to increase buying activity amid signs of rising demand.
Author: Dirina Mançellari, Senior Economist