{"id":756605,"date":"2024-03-01T12:08:23","date_gmt":"2024-03-01T10:08:23","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=756605"},"modified":"2024-03-01T12:08:28","modified_gmt":"2024-03-01T10:08:28","slug":"mood-shifts-for-one-of-south-africas-most-important-sectors","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/756605\/mood-shifts-for-one-of-south-africas-most-important-sectors\/","title":{"rendered":"Mood shifts for one of South Africa’s most important sectors"},"content":{"rendered":"\n

Sentiment within the manufacturing sector has improved, but business activity still remains subdued. <\/p>\n\n\n\n

ABSA’s Purchasing Managers\u2019 Index (PMI), an economic activity index with insights from purchasing managers in the manufacturing sector, increased from 43.6 points in January to 51.7 points in February – above the neutral level of 50. <\/p>\n\n\n\n

“While this is a welcome increase, it does need to be qualified by saying that\u00a0business activity\u00a0remains more subdued,” Absa said. <\/p>\n\n\n\n

“Indeed, of the five subcomponents of the PMI, only\u00a0suppliers’ performance\u00a0is above 50 \u2013 although, encouragingly,\u00a0new sales orders\u00a0are almost there.”<\/p>\n\n\n\n

“It is also useful to highlight that the survey tracks month-on-month movements, so with the January PMI being so weak, a slight uptick in February would have resulted in a considerable increase in the indices. Business conditions can still be more challenging than the long-term average experience.”<\/p>\n\n\n

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The business activity index recorded a solid increase from 37.1 in January to 48.6 in February. <\/p>\n\n\n\n

However, the average for the first two months of Q1 2024 is below that seen in Q4 2023 and the 50-point mark. <\/p>\n\n\n\n

This means that the sector may record a slight contraction in Q1 following marginal growth in Q4. <\/p>\n\n\n\n

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South Africa to dodge the dreaded ‘R-word’<\/a><\/blockquote>