Johannesburg - South Africa's seasonally adjusted Purchasing Managers' Index weakened in August, a survey showed on Monday, pointing to weak demand which should weigh on manufacturing output in the third quarter of this year.
The index lost 0.8 index points to 50.2 in August - barely holding above the 50 mark which separates expansion from contraction - from 51.0 in July, sponsor Kagiso Tiso Holdings said.
The New Sales Orders index lost 5.3 points to 46.9 while the Expected Business Conditions index shed 1.1 points to 52.9.
“We are seeing a clear downward trend in the demand for factory goods,” said Abdul Davids, head of research at Kagiso's asset management division.
“Supply continues to exceed demand and this does not bode well for manufacturing sector production.” -Reuters