South African Absa PMI increases at a slower pace in June
JOHANNESBURG, July 1 (Reuters) – South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose at a slower pace in June as growth in orders and business activity slowed, a survey found on Thursday.
The index, an indicator of manufacturing activity in Africa’s most industrialized economy, edged down to 57.4 points in June from 57.8 points in May, remaining above the 50 point mark that separates expansion from contraction.
“While the growth in new orders and sales activity slowed down somewhat, both remained very strong. Indeed, on the demand front in particular, after declining somewhat in May, sales exports have also returned to positive territory, ”Absa said in a statement.
Absa said the business activity index fell to 56.2 points in June from 58.8 points in May, while the orders index fell to 57.3 points from 60.5 points in the month. previous.
The South African economy was slowly recovering from the pandemic shock of COVID-19 last year, but concerns about new coronavirus infections and new lockdowns are now emerging.
South Africa, the most affected on the African continent in terms of recorded cases and deaths, on Sunday tightened its restrictions to a higher adjusted alert level.
“The index which tracks expected trading conditions in six months fell for a second month to 59.2, still signaling an expected improvement in trading conditions, slightly less than before,” Absa said.
“The move to Level 4 is likely to have soured expectations further, especially for companies with close ties to the hospitality industry.”
(Report by Olivia Kumwenda-Mtambo Editing by Promit Mukherjee)
((Olivia.Kumwenda@thomsonreuters.com; +27 10 346 1084;))
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