The seasonally adjusted Absa Purchasing Managers’ Index (PMI) - a measure of confidence in the manufacturing sector - plummeted to its lowest level in June since 2021, pointing to a contraction of the sector in the second quarter of 2023
All five subcomponents used to calculate the PMI dipped below the neutral 50 points. The index fell by 1.6 points to 47.6 in June from 49.2 points in May 2023 as weak demand drags on the manufacturing sector.
The survey showed that new sales orders edged lower once again as the decline in export sales deepened and domestic demand remained weak. The index reversed some of the gains the month before declining from 47.5 in May to 45.6 in June. “The global environment is not supportive for SA as it has been over the last few years. Global growth momentum is moderating, and export commodity prices are also moderating and that doesn’t bode well for South Africa’s exports.
Interest rates have shot up quite a lot and quickly and we still see the effects of these higher debt service costs on households’ disposable incomes. The effect of the weaker consumer environment, which we also saw in the consumer confidence data last week, is what’s feeding into the subdued domestic demand that manufacturers are seeing.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South African factory activity contracts again in June - Absa PMISouth African manufacturing activity contracted for the fifth consecutive month in June due to a worsening of business conditions, a survey showed on Monday.
Read more »
Absa PMI falls to a two-year lowThe seasonally adjusted Absa PMI fell to 47.6 in June from 49.2 points in May
Read more »
Another blow to business in South AfricaAbsa’s latest purchasing managers index reflects a decline in business activity.
Read more »
Manufacturing activity in SA declines in JuneAbsa's latest Purchasing Managers’ Index has shown a 1.6% decline to 47.6 in June.
Read more »
The children who carry a 'heavy burden' – the crushing reality of child-headed households | News24Unlike many of his peers invested in the latest social media trends or spending time at the malls, 15-year-old Sipho* has to juggle his school work and take care of his younger siblings. | YoliswaSobuwa
Read more »
OPINION | Why terminating Zimbabwean exemption permits was invalid, unlawful and unconstitutional | BusinessThe high court handed down a landmark judgment where the decision not to extend the longstanding ZEP after 31 December 2021 was found to be invalid, unlawful, and unconstitutional.
Read more »