SA PMI stabilising at lows (December 2008)

 EmailPrint This Post Print This Post

By Mokgatla Madisha

December’s survey results suggest a stabilisation of the deterioration in manufacturing business activity. The seasonally adjusted Investec PMI came in just above 40 index points, at 40.1 – only marginally higher than the record low of 39.5 posted in November.

Both the seasonally adjusted indicators for output and new sales orders increased slightly, but remain at very low levels. Employment conditions continued to worsen, with the seasonally adjusted employment index reaching 44.7. The pressure on input costs eased notably. The PMI price index declined by 12.8 index points to 71.8, as the global economic recession pushes international commodity prices downward.

Although it is reassuring that the index stabilised at this low level instead of dropping further, as was the case with most international PMI figures during December, the outlook for the manufacturing sector remains uncertain. Purchasing managers’ own expectations regarding business conditions in 6 months’ time recovered somewhat after the sharp downward adjustment in November, but on the whole, remain negative.

inv-pm-16-jan-2.jpg

Source: Mokgatla Madisha, Investec Asset Management, January 16, 2009.

 

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

 

OverSeas Radio Network

Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones


One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

Feed the Bull