South African factory activity expands in August – Absa PMI

South African factory activity expands in August – Absa PMI

1 Sep    Finance News

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South African manufacturing activity expanded in August as business output rose while new sales orders declined at a slower pace than before, a survey showed on Thursday.

The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) was at 52.1 points in August from 47.6 points in July, rising above the 50-point mark that separates expansion from contraction.

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“The business activity index rose back above the neutral 50 point mark for the first time since March. Since then, output was hampered by the flooding in KwaZulu-Natal and significant electricity supply disruptions,” Absa said in a statement.

“Domestic demand is likely continuing to benefit from the reopening effect, while some respondents also mentioned the return of production at Toyota’s flood-affected factory as supporting demand across the value chain.” (Reporting by Olivia Kumwenda-Mtambo Editing by Promit Mukherjee)

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