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Media release

Media release

Absa Purchasing Managers' Index February 2023

1 March 2023

After surprising on the upside in January, the seasonally adjusted Absa Purchasing Managersā€™ Index (PMI) declined to 48.8 index points in February. 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. Indeed, the 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. A glimmer of good news was that export sales 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.

1 March 2023

After surprising on the upside in January, the seasonally adjusted Absa Purchasing Managersā€™ Index (PMI) declined to 48.8 index points in February. 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. Indeed, the 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. A glimmer of good news was that export sales 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.