JOHANNESBURG, 1 JUNE 2019 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is concerned about the continuous volatility in the ABSA Purchasing Managers’ Index (PMI) released today, Economist Marique Kruger said today.
Ms Kruger said the data indicate a slight dip in broader manufacturing activity in the country, registering a decrease against the backdrop of a strong performance last month, which had firmly placed the headline PMI above the 50-neutral level.
The latest composite seasonally-adjusted PMI decreased to 49.8 in May 2018 when compared to 50.9 in April 2018. However, of the five sub-indices, the Supplier sub-index increased the most, surging to 51.8 in May 2018 from 47.8 in April 2018, followed by an increase in the New Sales Orders sub-index which also stayed above the 50-neutral level, registering 51.5, buoyed by an improvement in demand and output.
“Given that the PMI is the first data point for the preceding month, it is very important in setting the tone for how producers and relevant stakeholders in the manufacturing sector view the month ahead,” Ms Kruger said.
She added that against the backdrop of an ever-improving business and consumer confidence, stable PMI data provide a complementary platform for improving domestic expectations and the expectation is for the headline PMI to rebound next month.
“A continuous improvement in all sub-indices is also equally imperative towards an enhanced alignment of real data with positive expectations and SEIFSA looks forward to the next PMI release.”
Tel: (011) 298 9411 / 082 602 1725