Absa PMI declines further in December

File: Absa's Purchasing Managers’ Index (PMI) declined in December. eNCA

JOHANNESBURG - South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) declined further in December as business activity and new sales worsened, a survey showed on Friday.

The index, a gauge of manufacturing activity in Africa’s most industrialised economy, fell to 50.3 points in December from 52.6 points in November, staying just above the 50-point mark that separates expansion from contraction.

READ: Absa's profits plunge

“The reading just above 50 index points suggests that growth is levelling off in the manufacturing sector after solid month-on-month gains were recorded in the wake of April’s lockdown-induced plunge in activity,” Absa said.

“Worryingly, the business activity index declined to 44.9 index points in December. Strictly speaking, this means that manufacturing output declined compared to the previous month.”

Source
IRESS

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