Slower December activity inches PMI down

| 0 Comments

 

ManufacturingProduction.jpgThe South African Purchasing Managers’ Index (PMI) closed 2014 at a level marginally above the all-important 50-point mark despite declining by 3.3 index points to 50.2.


During Q2 and Q3 2014 the PMI languished below 50 with an average of 48.2, but the average reading for Q4 2014 came in at 51.2 index points.
 

“This confirms earlier expectations that the last quarter would be the best quarter of 2014 for actual quarter-on-quarter manufacturing production growth,” said Abdul Davids, Head of Research at Kagiso Asset Management.


The two most-weighted subcomponents of the headline PMI, the business activity index and the new sales order index, both declined in December.
 

After rising substantially in November, the business activity index dropped by a hefty 7.7 points, which brought the indicator back to below the neutral 50-point mark.
 

“This suggests that output is failing to gain traction despite a normalisation of domestic demand conditions after protracted strikes in the platinum and steel manufacturing sectors earlier in 2014,” said Davids.
 

The magnitude of the decline was surprising, but this was possibly owed to electricity load shedding and mandatory cutbacks by large industrial users of Eskom.
 

The new sales orders index fell to 52.6 from 55 index points in November.
 

AbdulDavids2.jpg“The global environment was not supportive of strong external demand, reflected in the December Eurozone manufacturing PMI, which remained subdued at 50.6 index points. In China, readings confirmed the fragility of demand as the official PMI estimate slipped to 50.1,” noted Davids.


As expected, the price index moderated for a third consecutive month, falling to its lowest level since July 2012 and suggesting a significant slowdown in the rate of input cost increases. This moderation was mainly owed to the sharp drop in the international oil price, explained Davids.
 

Encouragingly, the index measuring expected business conditions in six months’ time recovered from a slump in November and the PMI leading indicator edged above 1 for the first time in 2014, suggesting an acceleration in production going forward as new sales marginally outstripped current inventories.
 

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