Share

PMI jumps on new sales orders

Johannesburg – The seasonally adjusted ABSA Purchasing Managers’ Index (PMI) rose to 50.9 points in April on the back of new sales orders, after dipping below the 50-point mark in March, the bank said on Wednesday.

"The index rose by 4 points to reach 50.9 index points in April," said Absa.

The PMI, which gauges manufacturing activity, in March fell below the 50-point mark that separates expansion from contraction. 

ABSA commented: "This is more or less in line with the level recorded in February and above the average recorded during the first three months of the year."

New sales orders increased from 44.5 points in March to 56.5 points in April.

The index, which is compiled by the Bureau for Economic Research, indicated that the purchasing price index rose by 6.2 points to reach 66.9 in April, after a slight uptick in March.

“The rise is likely driven by the weaker rand exchange rate as well as a higher Brent crude oil price compared to the previous month (on average).”

According to the bank, these factors also resulted in the hefty fuel price hike effective from May 1 after fuel prices also increased sharply at the start of April, mainly on the back of fuel levy hikes.   

The business activity index increased from 46 to 49.1 in April, while the employment index rose to 49.5.

"If demand holds up in coming months, activity should follow the new sales orders index into positive terrain," said ABSA.


* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders