Absa PMI surges to 52.4 in July
The Absa Purchasing Managers’ Index (PMI), that's seasonally adjusted PMI saw a significant rise, increasing by 6.7 points to 52.4 in July 2024 from 45.7 in June 2024, reflecting a solid start to the third quarter. Here to discuss the details is Sello Sekele, Economist at Absa CIB.
Thu, 01 Aug 2024 11:01:33 GMT
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AI Generated Summary
- The Absa Purchasing Managers' Index (PMI) increased to 52.4 in July 2024, reflecting a solid start to the third quarter.
- The rise in new sales orders and supplier performance contributed to the positive momentum in the manufacturing sector.
- Improved political certainty and electricity supply, along with optimism for future business activity, are driving factors behind the sector's recovery.
South Africa's manufacturing sector showed a significant recovery in July 2024, with the Absa Purchasing Managers' Index (PMI) surging to 52.4. The seasonally adjusted PMI increased by 6.7 points from 45.7 in June 2024, indicating a solid start to the third quarter. Sello Sekele, Economist at Absa CIB, discussed the details of the index, highlighting the positive impact of political certainty and improved electricity supply on business activity. The rise in new sales orders and supplier performance contributed to the uptick in the index, reflecting a turnaround from previous months of weak activity. While the employment index showed a decline in job creation, Sekele noted that businesses typically wait for sustained growth before increasing payroll numbers. The easing of logistical issues and optimistic outlook for future business activity further bolstered the positive sentiment in the sector. Overall, the PMI results suggest a promising path towards economic recovery for South Africa's manufacturing industry.
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