The ABSA Manufacturing PMI for South Africa slumped to 45.7 in August 2019 from 52.1 in the previous month. It was the lowest reading since May, as all of the five major sub-indexes fell back into contraction territory, namely business activity and new orders. "Respondents continued to be fairly downbeat about exports for a third straight month, while domestic demand likely also weighed on orders,” Absa said. Also, the index which gauges business conditions in six months time declined, after 9 months above the neutral level, and the employment index decreased sharply to the lowest level in more than five years. Manufacturing PMI in South Africa averaged 50.94 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.