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South Africa PMI nudges up to 19-month high

Staff Writer | December 7, 2016
November data signalled a continuation of the economic upturn in South Africa that started in September.
South Africa factory
Africa   Standard Bank South Africa PMI
With new business rising and backlogs of work increasing for the first time in two years, companies raised their employment and output levels again during the latest survey period.

Meanwhile, inflationary pressures remained subdued with both input and output prices up only modestly. The PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30%), Output (25%), Employment (20%).

Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The seasonally adjusted Standard Bank South Africa PMI rose slightly from October’s 50.5 to 50.8 in November and signalled a further improvement in operating conditions at South African private sector firms.

November survey data highlighted a slight rebound in new orders placed with private sector firms in South Africa, following a marginal decline in October.

However, the rise in total new work was driven solely by the domestic market, as new export orders fell at the quickest pace in a year.