SA PMI falls to 45.4 in April

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Published May 4, 2015

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Johannesburg - The seasonally adjusted Kagiso Purchasing Managers’ Index (PMI), which measures activity in the South African manufacturing sector, fell to 45.4 index points in April from 47.9 in March and 47.6 in February, and remained below January’s 54.2. The 50 mark is the breakeven level, so this marked the third consecutive month of a contraction in manufacturing activity.

In all three months there has been frequent power cuts, with April experiencing 12 consecutive days of load shedding in the middle of the month, including a number of days when stage 3 load shedding was required. April was additionally impacted when many schools and companies closed for three days in the last week of April, which in addition to the two public holidays, gave employees and scholars a 9-day break.

The employment index slipped to 45.2 in April from 46.9 in March, 43 in February and 43.8 in January. The two largest subcomponents, the business activity and new sales orders indices, fell more sharply in April compared with March. The new sales orders index slumped to its lowest level since August 2009 to touch 42.3 from 49.0 in March and 49.3 in February, while the business activity or output index fell to the lowest level since July 2011 at 40.6 in April from 44.6 in March, 45.5 in February and 61.7 in January. The price index rose to 69.0 in April from 67.9 in March, 60.4 in February and 61.9 in January.

ANA

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