Photo by: Anton Jordaan
British multinational banking and financial services firm Barclays has partnered with the Bureau for Economic Research (BER) at Stellenbosch University to sponsor the monthly manufacturing economic indicator, the Purchasing Managers’ Index (PMI).
The index, now known as the Barclays PMI, was an established and important indicator of business conditions in South Africa. The index was previously sponsored by Kagiso Tiso Holdings, and called the Kagiso PMI.
“The PMI is a reliable leading indicator for actual South African manufacturing production, as well as trends in the broader economy,” Barclays Africa nonequity research head Jeff Gable said.
Barclays’ support for the index was in recognition of the importance of the manufacturing sector, which contributed 13.9% to South Africa’s gross domestic product last year. It also recognised the importance of the PMI in monitoring the health of the sector.
“The survey has sound academic foundations and is compiled on a monthly basis by the BER in association with the Chartered Institute of Purchasing and Supply Southern Africa.
“Since its inception in 1999, the manufacturing PMI became one of the key releases on the monthly data calendar and is used by business people, analysts and policy makers,” BER director Professor Ben Smit said.
Released on the first working day of every month, the index was compiled based on a survey of purchasing managers in the manufacturing sector. The survey gauged monthly changes in business conditions including production, sales orders and employment, besides other factors.