According to the BER, the seasonally adjusted Absa Purchasing Managers’ Index (PMI) declined to 48.8 index points in February from 53 in January. This was the first time since September 2022 that the headline index fell below the neutral 50-point mark, pointing to a marked deterioration in business conditions in the factory sector. Business activity and new sales orders indices were both in contractionary terrain, with demand dipping for a second consecutive month. The February survey period included an unprecedented seven consecutive days of stage 6 load-shedding, which was likely top of mind for many respondents. To be sure, load-shedding once again featured frequently in the commentary where respondents explained why activity declined relative to the previous month. Export sales was a brighter spot, which rose to the best level in a year, implying that producers supplying solely to the domestic market likely had a tough month. In line with a weaker output picture, the employment and inventories indices also came in below the neutral 50-point mark.
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