South African factory activity contracts again in June - Absa PMI
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GUEST – Andiswa Nondudule - Economist at ABSA
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) increased by 1.9 points to reach 45.7 points in June 2024, compared to 43.8 in May 2024. The improvement is welcomed, but it was the second consecutive month that the PMI remained below the 50-point mark. Following a very strong start to the second quarter, which was also reflected in solid growth in official manufacturing production data, May and June have been poor. Indeed, the business activity index average is barely higher in Q2 than in Q1. Despite the stable electricity supply through Q2, insufficient demand seems to have weighed heavily on the sector’s performance.
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) increased by 1.9 points to reach 45.7 points in June 2024, compared to 43.8 in May 2024. The improvement is welcomed, but it was the second consecutive month that the PMI remained below the 50-point mark. Following a very strong start to the second quarter, which was also reflected in solid growth in official manufacturing production data, May and June have been poor. Indeed, the business activity index average is barely higher in Q2 than in Q1. Despite the stable electricity supply through Q2, insufficient demand seems to have weighed heavily on the sector’s performance.