South Africa's PMI drops in May
JOHANNESBURG - South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) for May fell as business activity and new sales orders declined, the survey showed on Monday.
The index, which gauges manufacturing activity in Africa’s most industrialised economy, slipped to 45.4 in May from 47.2 in April, below the 50 mark that separates contraction from expansion.
May’s data was also the lowest print since October and below market expectations of a 47.5 points increase.
Kamilla Kaplan of Investec said, "Global headwinds, particularly the slowdown in global trade growth, are weighing on the local production sectors whilst persistently weak domestic economic sentiment is manifesting in deficient rates of private sector investment activity and restrained consumer spending."
Kaplan added that the PMI averaged 46.3 midway through the second quarter suggesting that weak growth momentum extended into the second quarter of 2019.
BUSINESS REPORT ONLINE / REUTERS