SOUTH AFRICAN FACTORY ACTIVITY REMAINS CONTRACTIONARY
Factory activity in South Africa remains in contraction territory, according to the latest Barclays Purchasing Managers’ Index which suggests that the manufacturing sector will not contribute meaningfully to growth in the fourth quarter.
The index which gauges the health of the manufacturing sector remained under the 50 mark in November.
Manufacturing had helped the country return to positive economic growth in the second quarter but it appears that the sector’s output growth of 8.5 per cent in the second quarter may not be repeated if the latest PMI survey is anything to go by.
The latest PMI stands at 48.3, up 2,4 points from October but not enough to show that activity is expanding.
Barclays Africa economist Miyelani Maluleke said here Thursday that some reprieve might be found in the fact that new sales orders have increased.
Manufacturers have also indicated that they expect business conditions to improve in the coming months.
Source: NAM NEWS NETWORK