PMI edges higher to 50.9 in January
The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) has edged up slightly to 50.9 points in January, from 50.3 in December.
While higher month-on-month, the January reading is still much lower than the average recorded in the last quarter of 2020.
Specifically, financial services provider Absa says the business activity index has declined for a fourth consecutive month, which points to a further loss in “recovery” momentum.
The bout of load-shedding in mid-January may also have weighed on production, while the adjusted Level 3 lockdown regulations would have negatively affected production in the liquor and hospitality-related industries.
Absa adds that the renewed increase in the supplier deliveries index, which is indicative of supplies being less readily available, suggests possible supply chain disruptions in January. This is likely not only owing to local restrictions, but also prevailing tight lockdown regulations in the rest of the world.
On a positive note, Absa says the new sales order index rose by two index points to 47.2 in January, despite a further deterioration in export sales, suggesting that new sales orders were supported by a reduction in the rate of decline in domestic demand instead.
Even with the uptick, the level of the index continues to point to constrained demand conditions.
The bank reports that purchasing managers did turn more optimistic about the operating environment going forward. The index tracking expected business conditions in six months’ time rose to 59.2 index points, from 52.9 in December.
This might be linked to prospects of an improved global economy during the second half of the year, which should boost exports.
The purchasing price index increased sharply in January, pointing to a reacceleration in cost pressures for manufacturers.
This was driven by a weaker rand exchange rate and higher Brent crude oil price compared to the previous month.
A hefty fuel price increase due on February 3 could put further pressure on costs in February.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation