http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.10Change: -0.20
R/$ = 13.40Change: -0.12
Au 1141.26 $/ozChange: 0.21
Pt 1009.00 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 03, 2012

Kagiso PMI shows marginal decline in August

Back
Kagiso Asset Management|Energy|Manufacturing|Manufacturing Sector|Product|Abdul Davids
|Energy|Manufacturing||
kagiso-asset-management|energy|manufacturing|manufacturing-sector|product|abdul-davids
© Reuse this

The seasonally adjusted Kagiso Purchasing Managers Index (PMI) remained relatively stable in August, losing a marginal 0.8 index points to a level of 50.2.

This placed the average PMI reading for the first two months of the third quarter at 50.6, which is lower than the average levels achieved in the first and second quarters of 2012, of 55.4 and 51.8, respectively.

The August PMI is down from 51 points in July, but higher than the 48.2 points recorded in June.

Kagiso Asset Management head of research Abdul Davids expected the manufacturing sector to once again place a drag on overall gross domestic product growth during the third quarter.

After gaining nearly 4 points in July, the business activity index lost a negligible 0.2 points in August to remain steady at 50.6.

The new sales orders index, which continued to be quite volatile, lost 5.3 points and fell back below the 50-point mark to 46.9.

“Despite the monthly volatility, we are seeing a clear downward trend in the demand for factory goods…After averaging at a robust level of 60.6 during the first quarter, this index declined to an average of 51.2 in the second quarter. The average for July and August is even lower at 49.6,” Davids pointed out.

Purchasing managers continued to downscale their expectations, as reflected in the 1.1-point decline in the expected business conditions index to 52.9.

Davids indicated that the PMI leading indicator, which remained below one for the fifth consecutive month, corroborated the fairly downbeat outlook. “This indicates that supply continues to exceed demand and this does not bode well for manufacturing sector production,” he said.

The rising oil price resulted in a sharp spike of 8.2 points in the price index, which was at 70.9.

“Brent crude oil prices have been trading above $110/b for some time and the Department of Energy has announced that local fuel costs will rise by 93c/l in the beginning of September,” Davids stated.

Meanwhile, the employment index gained 4 points and rose to 51. However, he cautioned that, as was the case in May, too much should not be read into this.

“The last time the employment index was above the 50 point mark for more than two consecutive months was between February and April 2010. Even more striking is that 2007 was the last time that it measured above 50 for more than three consecutive months,” Davids noted.
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
The African Development Bank (AfDB) will focus in coming years on tackling Africa's chronic power shortages to try to unlock its economic potential and end its vulnerability to fluctuations in commodity prices, its new president said. Though it boasts nearly a...
To increase the number of international arrivals in Cape Town from 1.56-million to 2.1-million a year over the next five years, which could potentially create 100 000 jobs in the Western Cape’s multibillion-rand tourism sector, the provincial Minister of Economic...
Eqstra Contract Mining Division CEO Justin Colling
JSE-listed Eqstra’s embattled contract mining and plant rental division is showing signs of recovery and is nearly ready to look after itself, the unit’s new CEO Justin Colling said on Tuesday. The division plunged into turmoil last year, dragging its parent’s...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96