Johannesburg - South Africa’s seasonally adjusted purchasing managers’ index (PMI) fell to 55.1 in March from a two-year high of 57.9 in February as business activity and new sales orders declined, sponsors Kagiso Asset Management said on Monday.
The business activity index made the largest negative contribution, giving up 7.4 points to 57.8 while new sales orders were down 5.1 points at 59.7, Kagiso said.
“Although remaining at a favourable level, the forward-looking indicators of the PMI also pointed to a somewhat less optimistic outlook,” said Hugo Pienaar, senior economist at the Bureau of Economic Research, which compiles the PMI.
The PMI, a key pointer to manufacturing activity, suggests the second-largest contributor to South Africa’s gross domestic product is still struggling despite recent signs the economy is slowly recovering from a recession in 2009.