https://www.engineeringnews.co.za

Manufacturing index slumps into contraction territory

14th July 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

The seasonally adjusted Absa Purchasing Managers Index (PMI) declined to 46.7 index points in June from 51.5 in May.

The deterioration was broad-based, with four of the five main subcomponents moving lower, compared with May, exacerbated by continued uncertainty about the outlook for the domestic economy.

“Several domestic data releases, such as the economy having entered a technical recession and business confidence plunging to recession-low levels, as well as continued uncertainty on the political front during the month, likely explain why respondents were notably more pessimistic about business conditions going forward,” the Bureau for Economic Research said in a statement.

The business activity index has been particularly volatile, slipping lower to 45.4 in June, from May’s 52.3.

The index tracking expected business conditions fell to 50 – its lowest level since February 2016 – from the 61.4 registered in May.

New sales orders also fell to 43.7 in June, reversing the gains in May to 54.1.

While the PMI reveals a subdued picture of conditions in the sector, the purchasing price index indicates that manufacturers at least reported a deceleration of upward cost pressures.

The price index declined by 7 points to 61.3 index points in June – the lowest since October 2016.

The employment index edged down marginally from 47.4 in May to 47.1 in June.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 03 May 2024
Magazine round up | 03 May 2024
3rd May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.235 0.282s - 137pq - 2rq
Subscribe Now