Browsing: Absa Purchasing Managers’ Index (PMI)

South Africa Manufacturing sector
  • For South Africa, there may be no growth in 2023. Indeed, the country is likely to have slumped into a technical recession in Q1 2023.
  • Absa Group survey shows South Africa’s power cuts are hitting the manufacturing sector hard.
  • A sustained drop in factory output may result in job losses, eroding the economy further.

South Africa’s manufacturing activity continued to contract in April, albeit at a slower pace than in the preceding two months. The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) hit 49.8 points in April  2023, up from 48.1 points in March. It, however, remained below the critical 50-point mark for the third straight month, indicating contraction in the sector.

This modest improvement was attributed to companies building up their inventories. Absa noted that the manufacturing sector faced yet another challenging month in April, with power cuts hindering output.

Eskom, the struggling state-owned utility, has imposed almost daily electricity …