News

South Africa's Absa PMI expands for first time in 7 months

JOHANNESBURG, Aug 1 (Reuters) – South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) moved into expansion for the first time in seven months in July, as improved demand saw sales and business activity improve, the survey showed on Thursday.

The index, which gauges manufacturing activity in Africa’s most industrialised economy, rose to 52.1 in July from 46.2 in June, edging above the 50-point mark separating contraction from expansion for the first time since December.

Four of the five major subcomponents in the index were above the neutral 50-point mark, with purchasing managers expecting business conditions to improve in the second half of the year, although they were less optimistic than before due to global trade uncertainty.

The employment sub-index was the sole component in contraction. South Africa’s rate of unemployment climbed to an 11-year high, data showed on Tuesday, on the back of a 3.2% contraction to economic growth in the first quarter. (Reporting by Mfuneko Toyana; editing by Olivia Kumwenda-Mtambo)

Source: Reuters.com © 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.

Follow us:
Visited 9 times