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

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More