South Africa PMI

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South Africa: PMI signals deteriorating business conditions in January

February 4, 2015

The HSBC Purchasing Managers’ Index (PMI) inched down from 50.20 in December to 49.80 in January. The figure marked a six-month low. As a result of the monthly drop, the index fell below the 50-threshold for the first time since July 2014, indicating a deterioration in business conditions.

January’s deterioration came on the back of further declines in manufacturing output and new orders. According to HSBC, “backlogs of work continued to fall, signaling increases is spare capacity, while the deterioration in export orders, after a period of sustained growth, suggests external demand is unlikely to compensate for weak domestic demand conditions.”

FocusEconomics Consensus Forecast panelists see investment rising 3.3% in 2015, which is up 0.1 percentage points from the previous month’s estimate. For 2016, the panel expects industrial production to increase 2.9%.


Author:, Senior Economist

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South Africa PMI Chart


SouthAfrica PMI January 2015

Note: HSBC Purchasing Managers’ Index. Readings above 50 indicate an improvement in business conditions while readings below 50 point to a deterioration.
Source: HSBC


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