Improvements in business activity and new sales orders in the third quarter in the Absa Purchasing Managers’ Index puts it back in expansionary territory with a good outlook for another slight expansion for the fourth quarter. The index, compiled by the Bureau for Economic Research at Stellenbosch University, increased to 52.6 points, up from 50 in October, with an average level of 49.6 recorded in the third quarter.
The PMI is an economic activity index based on a survey conducted by the Bureau for Economic Research and sponsored by Absa. BER also found it encouraging that purchasing managers turned more upbeat about business conditions going forward, with the index tracking expected business conditions in six months’ time rising to 51.7 from 49.2 in October.PMI largely unchanged
The business activity index ticked up further in November, but unlike the new sales orders index, did not manage to edge back above the neutral 50-point mark. The inventories index stayed above the neutral 50-point mark for another month and, in fact, ticked up slightly relative to October.