PMI drop points to flat Q1 factory output

| 0 Comments

 

Factory_output.jpgThe South African Purchasing Managers’ Index (PMI) dropped by 1.4 index points to 50.3 in March, mainly driven by a decline in the New Sales Orders Index, which tumbled to a level equal to August 2006.


The March New Sales Orders Index fell by 6.8 index points to 46.6 from 53.4 in February.


“This was likely owed to weaker domestic demand. The demand weakness may have been exacerbated by the prolonged production stoppages in the platinum mining sector, which halted the need for supplies from specific manufacturing sub sectors,” said Abdul Davids, Head of Research at Kagiso Asset Management, sponsor of the PMI.


The decline in the March PMI index brings the average for the first quarter to 50.6, which suggest that the manufacturing sector is struggling to gain any real momentum, said Davids.


“The South African manufacturing PMI remained firmly below levels recorded in developed economies,” said Davids.


In the US, the preliminary manufacturing PMI nudged down to 55.5 in March from February’s 45-month high of 57.1. The Eurozone’s flash manufacturing PMI came in at 53.0, slightly down from 53.2 in February.


The Chinese manufacturing PMI is underperforming even South Africa, the Chinese flash manufacturing PMI fell to an eight-month low of 48.1 points, noted Davids.


On a positive note, South Africa’s Business Activity Index returned to a level above the neutral 50-point mark (after lingering below 50 points for three consecutive months), suggesting a moderate acceleration in output. The index rose to 51.0 from February’s 48.4.

 

AbdulDavids2.jpgThe Price Index eased marginally to 93.0 points from February’s record high of 95.1. “The index remained exceptionally high and suggests considerable pressure on input costs, likely driven by the Rand exchange rate that remains substantially weaker than 12 months ago,” said Davids.


The Employment Index ticked up by 3.6 index points to 51.8, while the Inventories Index returned to January’s level after rising sharply in February, falling to 53.7 from 59.6.


The index measuring Expected Business Conditions in six months’ time fell to its lowest level since September 2013, however, Davids noted that at 54.5 index points “manufacturers are less optimistic, but still expect conditions to improve over the next few months.”


Read the full report

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

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More