Figures indicate South African manufacturing slump

Mining strikes have been blames as one reason for the PMI drop. (Image source: Duncan Edwards)Mining strikes have been blames as one reason for the PMI drop. (Image source: Duncan Edwards)

South Africa's purchasing managers' index (PMI), which is used to gauge manufacturing sector activity, fell to a three-year low in September

 Kagiso Tiso Holdings, which compiles the PMI, warned that the four point drop in the index to 46.2 points indicated weak manufacturing production in South Africa for the third quarter.

A PMI reading of over 50 indicates growth whereas below 50 shows a contraction.

The drop is being attributed to flagging European demand and the spread of mining strikes across the country.

Manufacturing, which makes up 15 per cent of the South African economy, fell by one per cent in the second quarter.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?