- \n
- December: 45.2<\/li>\n
- January: 56.0<\/li>\n
- February: 45.5<\/li>\n<\/ul>\n
\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/pmi-business-activ-feb-2023.jpg\")
<\/a><\/p>\nThe new sales order index dropped to its lowest level since October 2022, declining from 49.9 in January to 49.4 in February.<\/p>\n
Although the February statistics mainly provided negative news, export sales grew to the best level in a year. However, this means that producers solely supplying to the domestic market likely faced a difficult month.<\/p>\n
In addition, due to the weaker output picture, the inventories index also dropped below the neutral 50-point mark – declining from 53.1 in January to 46.5 in February.<\/p>\n
The employment index declined to 47.1 in February, from 48.8 in the previous month – remaining firmly below the natural 50 mark.<\/p>\n
The index measuring the expected business condition in six months’ time also declined to 46.8 – the lowest level since May 2022. Respondents are thus downbeat about future business conditions – to similar levels seen in the early stages of the Covid-19 lockdown.<\/strong><\/p>\n
Moreover, the purchasing price index further increased for the second month to reach the highest levels recorded since September 2022 – standing at 78.6 from 69.3 in January.<\/p>\n
The survey took place when the rand was trading at over R18\/$, which would have affected costs, particularly imported raw materials and intermediate goods.<\/p>\n
The surge in the PMI\u2019s price index may mean an acceleration in factory-gate prices (where low purchasing prices for goods are agreed upon, but the buyer must pay for the transportation of the goods.)<\/p>\n
That being said, Absa noted that the index remains well below the peaks reached in the first few months of 2022.<\/p>\n
The graph below shows an overview of the PMI and manufacturing production since 2000:<\/p>\n