This is the fifth month in 2024 that the PMI has edged into contractionary territory.The Absa PMI has declined back to contractionary territory in August, decreasing by 8.8 points to 43.6 in August 2024, down from 52.4 in July.
The index measuring supplier deliveries decreased by 4.5 points, indicating an improvement, as this index is inverted. Absa says this could be due to a decrease in new orders, with suppliers under less pressure to meet demand. “Given stable oil prices and a relatively stronger currency, fuel prices decreased slightly at the beginning of August, with more significant cuts for September,” Absa says.The index tracking expected business conditions to decrease in August. Despite the decline, it remains at a high level and signals an improvement in business conditions going forward, according to Absa.