PMI improves, but manufacturing conditions remain tough

| 0 Comments
AbdulDavids.jpgThe seasonally adjusted Kagiso Purchasing Managers' Index (PMI) increased by 1.2 points to 51.6 in June. The index has now been above the key 50-point mark for three consecutive months.


There was a modest improvement across all the major sub-indices, except the employment sub-index, which continued to decline, said Abdul Davids, Head of Research at Kagiso Asset Management.


The business activity index regained all of May's losses to reach 52.2 points in June. However, Davids points out that while the improvement is positive, the level of the index suggests that production remains under pressure.


The new sales orders index increased notably by 2.9 points to 54.0 in June, indicating that demand for manufactured goods improved somewhat.


Davids noted that tentative indications of an improvement in the US economy may have contributed to the increased demand for manufactured goods. "Nevertheless, a sustained recovery in demand hinges on improvement in domestic demand and better GDP growth prospects in the EU and US economies," he said.


Following the sharp destocking in April, the inventory index continued to improve in June, increasing to 55. However, manufacturers appear to be cautious of building their inventories too quickly as global and local economic conditions remain uncertain.


The price index remained largely unchanged, declining by a mere 0.2 points to 82.2 in June. This relatively high level indicates that manufacturers face sustained input cost pressure. A significantly weaker rand may have also contributed to high input costs in the month. "With the rand trading above R10/US$ for most of the month, imported materials used in the manufacturing process would have been more expensive to acquire," Davids explained.


"While the latest PMI results show that conditions improved marginally, the outlook for the sector is expected to remain challenging in an environment of muted demand and relatively high input prices," he concluded.


Download the full report here.

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the