The ABSA Manufacturing PMI for South Africa fell to 45.4 in May 2019 from 47.2 in the previous month. The reading pointed to the fifth consecutive contraction in factory activity, as new orders, business activity and inventories dropped. On the other hand, the job creation rate and supplier deliveries increased. Finally, expectations regarding business conditions in six months’ time remained unchanged above the average recorded during 2018. Manufacturing PMI in South Africa averaged 50.98 from 1999 until 2019, reaching an all time high of 60.87 in April of 2002 and a record low of 35.09 in April of 2009.
Manufacturing PMI in South Africa is expected to be 49.00 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in South Africa to stand at 53.00 in 12 months time. In the long-term, the South Africa Manufacturing PMI is projected to trend around 54.00 in 2020, according to our econometric models.