SA factory orders still sliding

Johannesburg - South Africa's seasonally adjusted purchasing managers’ index (PMI) fell to 53.7 in April from 55.1 in March, declining for the second straight month as lack of demand from Europe weighed on new sales orders, sponsor Kagiso Asset Management said on Wednesday.

Kagiso said the leading indicator for PMI - new sales orders as a ratio of inventories - fell to 0.96, coming in below 1 for the first time since December and indicating that inventories were too high compared to demand.

The PMI was expected to moderate further while the employment sub-index still pointed to contracting employment in manufacturing.