Stan­dard Bank sees pos­i­tive signs

The Star Early Edition - - BUSINESS REPORT -

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

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