The ABSA Manufacturing PMI for South Africa dipped to 41.6 in September 2019 from 45.7 in the prior month. This is the second consecutive sharp decline in factory activity and the largest since August 2009, amid continued weak demand conditions. In September, three of its five sub-components decreased sharply, namely new sales orders, purchasing inventories and business activity. Meanwhile, supplier deliveries and employment were the only sub-components which rose, although the employment index remained at a very weak level. "Besides sustained weak domestic demand conditions, the poor South African manufacturing print comes against a backdrop of growing concerns about the health of the global economy and, in particular, South Africa’s trading partners in Europe," Absa said. Manufacturing PMI in South Africa averaged 50.90 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 43.00 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 47.40 in 12 months time. In the long-term, the South Africa Manufacturing PMI is projected to trend around 50.10 in 2020, according to our econometric models.