Absa PMI improves for a second consecutive month in October
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) increased by 0.9 points to 49.6 in October, from a revised 48.7 in September, marking a second consecutive monthly improvement, with all five components of the headline index increasing.
However, while activity and new sales orders have recovered some ground from their August lows, employment remains particularly weak.
Simultaneously, purchasing-price pressures intensified and expectations regarding future business conditions deteriorated.
The business activity index edged higher to 48.6 points in October, following a more substantial improvement in September. Similarly, the new sales orders index increased for a second consecutive month to 46.8 points.
While encouraging, both indices remain below the neutral 50-point mark, indicating that production and demand conditions remain under pressure, Absa notes.
The improvement in new orders was accompanied by a rise in the export sales index, which approached the neutral mark. Absa says this suggests some easing in the pressure on external demand, although the index does not yet signal an outright increase in export orders.
Notable was the further increase in the purchasing prices index, from 71.1 to 73.7 points. The sharp rise in fuel prices at the beginning of October likely contributed to the increase, alongside a somewhat weaker rand.
However, manufacturers should receive some relief in November following the temporary fuel-levy reductions announced in the Medium-Term Budget Policy Statement.
After improving from a low in July, the index tracking expected business conditions in six months’ time fell to 51.7 points in October, from 55.3 in September. While still marginally above the neutral mark, the decline suggests that purchasing managers remain cautious about the outlook. Respondents highlighted uncertainty surrounding the upcoming local government elections, Absa states.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
North Ridge Pumps is an independent manufacturer of pumps. We have a proven track record for product support and customer service throughout the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
