RTTNews - S. Africa's Purchasing Managers Index or PMI for the manufacturing sector increased to a seasonally adjusted 37.9 in June from 37.3 in May, the Kagiso Securities said on Wednesday. This was the second consecutive month of increase in PMI.
A reading above 50 indicates expansion in the sector, while a reading below 50 signals a contraction.
The average PMI stood at 36.9 in the second quarter, down from 38.6 in the first quarter.
Although the May and June PMI data indicate that the worst of the factory recession may be over, the low index levels hint that positive growth is not on the cards anytime soon,the Kagiso said.
The new sales orders index rose to 38.2 in June from 35.7 in May, while the business activity index moved up to 37.9 from 35.1. At the same time, the employment index remained unchanged at 36.9.
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