PMI continues strong gains in February

| 0 Comments
PMI March growth.jpgThe seasonally adjusted Kagiso Purchasing Managers Index (PMI) posted strong gains in February 2012, rising by 4.7 index points to reach a sturdy 57.9 – the highest level since February 2010.

At the current level, the domestic PMI is pointing to significantly stronger domestic factory sector trends than would have been expected given the depressed nature of the manufacturing sectors in South Africa’s key trading partners such as Europe and China.

“Indeed, the SA PMI has of late tracked the solid performance of the US manufacturing sector more closely,” said Abdul Davids, Head of research: Kagiso Asset Management.

The high level of the PMI may also reflect that the economies of the most important countries to which SA exports in Europe, including Germany, are still reasonably sound.

Furthermore, it may be indicative of solid domestic demand conditions.

The PMI is a diffusion index that strives to measure how widely a certain trend is dispersed in the factory sector. At the very least one can say that the latest results indicate that the positive trends are being experienced by a growing number of manufacturers, said Davids.

“We would like to see further confirmation of this in coming months before making a call on whether it also suggests a notable acceleration in manufacturing production.”

The seasonally adjusted business activity and new sales orders indices, the largest weighted PMI components, drove the robust headline increase.

The business activity index made the largest positive contribution, courtesy of an 11.6 point jump to a five and a half year high of 65.2. Not one of the 26 countries / regions for which PMIs were published in January had a business activity reading above 65 points.

The new sales orders index points to robust demand for South African factory goods as the index gained 7.5 points to 64.8 index points, its highest level since early 2010.

The forward looking indicators of the PMI suggest a continuation of the current trend. The expected business conditions index posted a further marginal increase to 66.2 points, while the PMI leading indicator (new sales orders expressed as a ratio of inventories) rose from 1.07 in January to 1.26 during February.

The ratio indicates that the current level of inventories in the manufacturing sector is low relative to the demand for factory goods, said Davids.

Download the 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

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More

Commodity Manager MRO &CAPEX

  • <500 000 Commodities Gauteng Permanent Projects / Category Management
(Total Cost To Company 900k - 750k) includes ...More

Commodity Specialist - IT Hardware and Software

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R550k - R650k) including

Sourcing Specialist

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
(Total Cost to Company 500k - 650k)Experience and ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
(Total Cost to Company R850k - R1mil) includes

Senior Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Strategic Sourcing
(Total Cost To Company 500k - R750k) includes ...More

I.T Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R350k - R450k) includes

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Permanent Procurement Management
(Total Cost to Company R700k - R550k) Including ...More