South Africa’s seasonally adjusted Purchasing Managers’ Index (PMI) edged down by 0.1 points to 50.4 in May, staying above the 50 mark that separates expansion from contraction. However, both the business activity and new sales orders sub-indices lost ground, suggesting subdued demand in the manufacturing sector, the sponsor of the survey Kagiso Tiso Holdings said.
The headline PMI, which is a key measure of factory activity, was underpinned by robust increases for the inventory and employment subcomponents. The inventory index rose by 7.7 points to 54.7 and the employment index gained 5.1 points to a still depressed level of 47.2. The new sales orders index lost 2.6 points to 51.1, while the business activity index declined by 1.6 points to 50.6 after a solid gain in April.
The PMI indicated also that price pressures have accelerated, with the price index rising by 4.4 points to 82.4. This development can be explained by the sustained weakness of the rand.
Looking forward, the PMI gave mixed signals, as the index measuring expected business conditions in six months’ time rose for the second straight month, while the PMI leading indicator (the ratio of new sales orders to inventories) fell to below 1 again, showing that the level of purchased stock exceeded the demand for manufactured goods, which does not bode well for future factory sector production.
| Kagiso Purchasing Managers Index | |||||
| May-13 | Apr-13 | Mar-13 | Feb-13 | Jan-13 | |
| Business activity | 50.6 | 52.2 | 47.7 | 52.2 | 49.6 |
| New sales orders | 51.1 | 53.7 | 52 | 60.2 | 50.9 |
| Backlog of sales orders | 37.6 | 38.5 | 40.6 | 36.3 | 30.6 |
| Inventories | 54.7 | 47 | 55.6 | 55.6 | 56.8 |
| Purchasing commitments | 50.6 | 48 | 53 | 54.7 | 43.3 |
| Expected business conditions | 54.1 | 51.3 | 47 | 56.8 | 58.2 |
| Suppliers’ performance | 50.6 | 54.5 | 51.4 | 51.8 | 48.8 |
| Prices | 82.4 | 78 | 87.3 | 86 | 82 |
| Employment | 47.2 | 42.1 | 42.6 | 45.7 | 42.3 |
| PMI, seasonally adjusted | 50.4 | 50.5 | 49.3 | 53.6 | 49.1 |
| PMI, not seasonally adjusted | 49.6 | 48.1 | 49.8 | 52.9 | 44.3 |
| Source: Kagiso Tiso | |||||
Related Articles
Ghana to host new batch of US deportees under West Africa deal
Ghana will receive about 40 West African deportees from the United States in the coming days, Foreign Minister Samuel Okudzeto Ablakwa confirmed, under a controversial third-country returns ... more
Ukrainian forces capture Kenyan in Kharkiv amid Russia’s foreign recruitment drive
Ukrainian troops have captured a Kenyan national fighting for Russia during clashes near the town of Vovchansk in Kharkiv Oblast, the 57th Motorised Infantry Brigade said on Sept. 17, The Kyiv ... more
Kenyan MPs oppose Tanzanian tycoon’s bid for Portland Cement stake, urge buyback
Kenyan lawmakers have opposed the proposed sale of a 29.2% stake in East African Portland Cement (EAPC) to Tanzanian businessman Edhah Abdallah Munif, arguing the deal undervalues the company and ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
24 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago