PMI hits 6-year low - manufacturing staring down a struggle

| 0 Comments

 

manufacturing_plant.top.jpgSouth Africa’s seasonally adjusted PMI index declined to its most depressed level since August 2009. The November index decreased sharply to 43.1 from 48.1 in October.


The PMI movement suggests weak economic growth in Q4. The average headline PMI for the first two months of Q4 is 4.4 index points below the third-quarter level.

 

This suggests that the sector is unlikely to sustain its recent rebound and, despite the absence of load shedding, growth could be much weaker in the final quarter of the year, said PMI index sponsor Barclays in a statement.


Weak demand remains one of the sector’s biggest challenges.


The expectation that the current weak demand environment will not improve significantly over the near term is likely to weigh on manufacturers’ willingness and ability to increase output, said Barclays.


It is the first time since the recession in 2009 that all of the PMI’s major sub-components are below the neutral 50-point mark, indicating a contraction in manufacturing.


New sales orders recorded the sharpest decline of the major subcomponents, slumping to 43.5 in November from 50.5 in October while business activity dropped further to 41.4 from 47.7 in October. Both new sales orders and business activity are now at their lowest level since April this year.


The employment index also fell, suggesting that the sector could continue shedding jobs.


Business conditions are not expected to be any better in the short term. The expected business conditions in six months’ time index slumped to an almost seven-year low of 43.2 index points.


"This suggests that manufacturers do not foresee a quick turnaround of the business environment," said Barclays.

 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Trade Compliance Senior Analyst

  • <500 000 >500 000 Analyst Buyer Gauteng Permanent
Trade Compliance Senior AnalystLocation – Rosslyn, South AfricaThe ...More

Logistics Controller

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Based in Stellenbosch, South Africa’s leading fruit exporter ...More

SUSTAINABILTY MANAGER - FARMING

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing
(Total Cost to Company R900k – R1.2mil) includes ...More

Category Manager Logistics

  • >500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
(Total Cost to Company R900k – R1mil) includes ...More

Group Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management
Location: Johannesburg .Cost to Company R1.2mil – R1.4mil excluding ...More

Procurement Analyst

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R200K – R400K)We are ...More

Industrial Engineers

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Strategic Sourcing
(Total Cost to Company R400K – R550K)We are ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Role: The Category Manager will be responsible for ...More
Location: Johannesburg Description: To develop and manage relationships ...More
Location: Johannesburg Description: To develop and manage relationships ...More

Global Commodity Manager: Mining Commodities

  • Commodities Gauteng Permanent
Location: Johannesburg Description: Ensuring continuity of supply ...More

Global Commodity Manager: Mining Equipment

  • Commodities Gauteng Permanent
Location: JohannesburgDescription: The commodity manager is accountable for ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Location: Johannesburg.Description : Responsible for successful implementation and ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Examples of high impact initiatives are Equipment Automation, ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R 650 000 –R 800 000 CTC pa GautengA ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Management
R 600 000 – R 700 000 CTC ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Officer / Specialist
R 500 000 – R 550 000 CTC ...More