SA PMI inches higher, but activity still restrained

| 0 Comments

 

AbdulDavids2.jpgThe South African Purchasing Managers’ Index (PMI) increased by 1.8 index points to 51.7 in February, helped by a rebound in the New Sales Orders Index. Worryingly, the Business Activity index remained stuck below the 50-point mark for a third consecutive month, said Head of Research at Kagiso Asset Management, Abdul Davids.


At 48.4 index points the Business Activity Index does not bode well for manufacturing production. The prolonged strike in the platinum sector could be having a dampening impact on activity levels, said Davids.


The increase in the New Sales Orders Index to 53.4 – its best level since August 2013 – is owed to improved global demand as the Eurozone’s manufacturing sector continued to perform strongly. “The preliminary Eurozone manufacturing PMI reading for February shows that underlying demand for manufactured goods continued to be robust, although February’s preliminary reading was slightly lower than the January level.” The headline Eurozone PMI Index reached a 32-month high in January, noted Davids.


Against the backdrop of the weak levels of business activity and higher sales orders, it was surprising that the Inventories Index rose sharply to 59.6 index points from 53.6 index points in January; manufacturers could be stocking-up ahead of further cost increases due to the weak rand exchange rate, said Davids.


The Price Index soared to its highest level ever recorded since the start of the PMI series in 1999, to 95.1 index points from 89.3 in January. This was probably caused by the continued weak Rand exchange rate that pushed up the cost of imported goods paid for in foreign currency. “Current energy and fuel prices are the highest on record and these constitute a sizeable percentage of manufacturers cost bases,” noted Davids.


Looking ahead, manufacturers were less optimistic about Expected Business Conditions in six months’ time. The index fell to 55.7, from 61.4 index points in January. “The decline in the expected business conditions index, together with the contraction in the leading indicator does not bode well for manufacturing production in the coming months,” concluded Davids.


View the full report here
 

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

Sourcing

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing R 800 000 – R 1.0 million ...More

Sourcing

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing R 800 000 – R 1.0 million ...More

Supply Chain Planner

  • <500 000 >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
 Supply Chain Planner R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner .R 350 000 - R550 ...More

Supply Chain Planner

  • <500 000 >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Supply Chain Planner R 350 000 - R550 ...More

Demand Planner.

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Strategic Sourcing
Demand Planner.R 400 000 – R 500 000 ...More

Logistics Specialist

  • >500 000 Gauteng Logistics & Warehousing Permanent Procurement Officer / Specialist
Logistics Specialist,R 400 000 – R 500 000 ...More

Warehouse & Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Warehouse & Distribution Manager.R 550 000 – R ...More

Operations Excellence Manager

  • >500 000 KwaZulu Natal Operations, Planning & Inventory Permanent Supply Chain
Operations Excellence Manager,R 700 000 – R 800 ...More

Operations Excellence Manager

  • >500 000 KwaZulu Natal Operations, Planning & Inventory Permanent Procurement Management
Operations Excellence Manager:R 750 000 – R 850 ...More

Supply Chain Manager

  • >500 000 Gauteng Permanent Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Supply%20Chain/Supply%20Chain%20Optimization%20Manager/TP2004313/MMaR 900 000 – R 1.0 million CTC ...More

Procurement Specialist / Buyer

  • <500 000 >500 000 Permanent Procurement Officer / Specialist
Job Purpose/Scope The role will manage relatively small

Assistant Distribution Center Operations Manager

  • <500 000 Operations, Planning & Inventory Permanent Procurement Management Western Cape
(Total Cost to Company R360K-R420K) .Location: Cape Town.Opportunity ...More

Business Analyst Continuous Improvement Analyst

  • <500 000 Analyst Permanent Supplier / Business Development Western Cape
(Total Cost to Company R550K – R650K)Role: Business ...More

Senior Analyst

  • >500 000 Analyst Gauteng Permanent Projects / Category Management
(Total Cost to Company R600k – R700K) excluding ...More

Demand Planner

  • <500 000 Operations, Planning & Inventory Permanent Supplier / Business Development Western Cape
(Total Cost to Company R500K-R650K) Location: Cape TownThe opportunity ...More

Demand Planner

  • >500 000 Operations, Planning & Inventory Permanent Supplier / Business Development Western Cape
 (Total Cost to Company R500K-R650K) Location: Cape TownThe opportunity ...More

Commodity Specialist

  • >500 000 Commodities Gauteng Permanent Procurement Officer / Specialist
 (Total Cost to Company R500K – R600K) excluding ...More