Absa's Economist Miyelani Maluke talks PMI shock drop
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In a month where the global PMI reached a 7 year high in December last year, South Africa's manufacturing sector showed a surprising decline.
After four months of gains, the ABSA PMI declined in December. There was a broad-based decline across all the major sub-indices. The index, which gauges manufacturing activity, fell to 44.9 from 48.6 in November. But despite the overall drop respondents appear to be more upbeat about the outlook for the sector. The sub-index tracking expected business conditions increased to 61.9 from 50 in November. And based on that, Absa says the industry could be poised for a better performance in 2018, barring any adverse shocks.
Absa's Economist Miyelani Maluke takes us through the lender's purchasing managers index for December which showed a surprise decline.
After four months of gains, the ABSA PMI declined in December. There was a broad-based decline across all the major sub-indices. The index, which gauges manufacturing activity, fell to 44.9 from 48.6 in November. But despite the overall drop respondents appear to be more upbeat about the outlook for the sector. The sub-index tracking expected business conditions increased to 61.9 from 50 in November. And based on that, Absa says the industry could be poised for a better performance in 2018, barring any adverse shocks.
Absa's Economist Miyelani Maluke takes us through the lender's purchasing managers index for December which showed a surprise decline.
