http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.12Change: 0.06
R/$ = 10.51Change: 0.02
Au 1308.30 $/ozChange: 9.42
Pt 1479.50 $/ozChange: 6.00
 
 
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 Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 01, 2012

Manufacturing index recovers, but demand remains weak

Back
Africa|Kagiso Tiso Holdings|Africa|China|South Africa|United States|Manufacturing Sector|Abdul Davids
Africa||Africa|||
africa-company|kagiso-tiso-holdings|africa|china|south-africa|united-states|manufacturing-sector|abdul-davids
© Reuse this



The seasonally adjusted Kagiso Purchasing Managers Index (PMI) gained 2.8 index points in July to reach a level of 51 after contracting to below the key 50-point level last month, sponsor Kagiso Tiso Holdings said on Wednesday.

However, Kagiso Asset Management head of research Abdul Davids said South Africa’s manufacturing sector remained under strain, owing to lower demand from key export markets.

Kagiso said in a statement that the improvement in the index was broad-based, with most of the subindices showing gains.

The new sales orders index was the largest contributor, having increased by almost 6 index points to 52.2, but Davids pointed out that this result did not necessarily suggest stronger demand.

“The increase in the new sales orders index was not driven by a greater number of managers reporting increased orders, but rather by the fact that orders remained unchanged. This, therefore, indicates that demand appears to have stabilised following the steady decline we have seen since February,” he explained.

Similarly, the business activity index gained 3.8 points to reach 50.8 after the majority of managers indicated that activity levels remained unchanged from June to July.

Despite higher oil and commodity prices in July, the price index continued to decline and was currently at 62.7, its lowest level since the end of 2010. “As a result, we expect Statistics South Africa’s producer price index, which has remained steady at 6.6% year-on-year for the last three consecutive months, to start moderating,” Davids said.

Further, after declining by more than 6 points in June, the employment index increased marginally during July to reach 47. Davids stated that this confirmed that employment prospects in the local manufacturing industry remained limited and were expected to persist for the remainder of this year.

Looking ahead, the index measuring expected business conditions over the next six months was expected to decline to 54, its lowest level since September 2011, as purchasing managers continued to lower their expectations.

“This is a clear signal that conditions in the local manufacturing sector will remain weak for the foreseeable future,” Davids indicated, adding that weaker anticipated business conditions were in line with current conditions in China and the US, where the latest flash PMI readings came in at 49.5 and 51.8, respectively.

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Manufacturing News
A locally designed and built aircraft has entered ground-testing phase at the Wonderboom Airport, in Pretoria, marking a significant milestone for South Africa-based defence solutions business Paramount Group.
SABMiller, the world's second-biggest brewer, reported higher first-quarter sales volumes on Thursday, helped by a return to growth in lager sales in Africa. The London-listed company behind beers such as Miller, Grolsch and Peroni said revenue rose 6 % in the three...
A Metrorail coach in need of refurbishment
The Passenger Rail Agency of South Africa (PRASA) will continue refurbishing its existing Metrorail fleet for another 15 years, despite the R51-billion acquisition of 600 new trains of six cars each, signed last year. Not all the new coaches will come on stream at...
More
 
 
Latest News
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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