Decrease in PMI is bad news for manufacturing sector

A dip in overall business activity in the broader manufacturing sector did not bode well for future activity of companies in the broader manufacturing sector, said Steel and Engineering Industries Federation of Southern Africa (Seifsa) economist Marique Kruger.

The Absa Purchasing Managers’ Index (PMI) decreased from 47.2 points in April to 45.4 points in May, providing a discouraging forwardlooking insight into the manufacturing sector’s health, while still trending below the benchmark

level of 50, which separates expansion from contraction. Speaking after the release of the data, Kruger said the headline PMI and its five main sub-indices played an important role in businesses’ decisionmaking processes.