Standard Bank sees positive signs

STANDARD Bank/Markit Purchasing Managers Index (PMI) printed above 50 indices for a ninth consecutive month, but showed signs of flattening growth in the manufacturing sector. This was the index’s longest sequence of improvement since 2013. The PMI was recorded at 50.2 in May from 50.3 in April. Standard bank said the PMI has averaged 50.6 compared to 48.8 recorded in the same period last year. In 2016 the PMI averaged 49.7 and has so far been volatile trending towards the 50 neutral mark that separates expansion from contraction. Standard Bank said the main positive influences on the PMI in May were growth of employment and longer suppliers’ delivery times. “With overall workloads broadly stagnant during the month, private sector firms in South Africa lowered their purchasing activity. This followed a sevenmonth sequence of growth,” the company said. - Kabelo Khumalo