South Africa’s Absa Manufacturing Purchasing Managers’ Index( PMI) fell to 51.2 in July from a near seven-year high of 53.9 in June.
Business activity and new orders rose at a slower pace than in the previous month and the job numbers went down despite activity recovering.
The Absa Manufacturing PMI is a monthly survey of purchasing managers in South Africa’s manufacturing sector. The index provides leading indications of business conditions in the sector.
“Some respondents noted that output remained below pre-lockdown levels,” Absa said.
Also, the index tracking business conditions in six months rose to the highest level in a year, but still “fairly subdued” compared to the long term average.
South Africa put in place stringent lockdown rules in late March to curb the spread of the coronavirus, but has since eased some of these restrictions.
Several vital industries have been allowed to operate at full capacity subject to health and safety protocols.
The Bureau for Economic Research compiles the Absa Purchasing Managers’ Index™ (PMI™) with sponsorship from Absa.
The PMI derives from a similar one produced by the Institute for Supply Management (ISM) in the USA.
The PMI looks at the level of Business Activity, New Orders, Employment, Supplier Deliveries and Inventories.
An index with a value of 50 indicates no change in the activity, a value above 50 indicates increased activity, and a value below 50 indicates decreased activity.