Zim's first PMI shows economy in free fall

Harare – Zimbabwe’s first-ever purchasing managers’ index (PMI) showed that the country’s economy is in contraction.

The PMI, which was conducted by the Confederation of Zimbabwe’s Industries, stood at 43.5 which is an indication of an economy in decline.

In comparison, South Africa's HSBC PMI stood at 52.6 in September from 51.1 in August.

A PMI above 50 reflects growth in the manufacturing sector, while a PMI below 50 reflects contraction.

The PMI is a diffusion index that looks at new orders, inventory levels, production, supplier deliveries and employment conditions.

Zimbabwe’s economy has been in free fall since the second half of last year, with industry struggling for funding while demand slowed.

Capacity utilisation for the manufacturing sector in 2014 has fallen to 36.1% from 39.6% last year.

READ: Low demand hits Zim manufacturing sector

Zimbabwean President Robert Mugabe's wife Grace Mugabe on Wednesday said the cash-strapped country's economic woes has not spared her and has badly hit her dairy business.

READ: Zim woes hurt Grace Mugabe's dairy farm

  - Fin24