Podcast Summary
South African manufacturing sector PMI: The South African manufacturing sector PMI dropped significantly in August to 43.6, below the neutral mark of 50, due to lower business activity and new sales orders, possibly due to lingering uncertainty from recent elections and weak demand.
The South African manufacturing sector, as indicated by the Purchasing Managers Index (PMI), experienced a significant pullback in August after a strong showing in July. The PMI dropped by 8.8 points to 43.6, which is below the neutral mark of 50. This decline was driven by lower business activity and new sales orders, possibly due to lingering uncertainty from the recent elections and weak domestic and global demand. The strong base in July likely contributed to the current pullback. Despite the post-election satisfaction, it remains to be seen if the outcome of the elections and its prospects continue to support the sector's growth.
Ghanaian economy: The Ghanaian economy's prospects remain positive despite current low business activity and employment challenges, with permanent job growth necessary for an improvement in the employment index.
The Ghanaian economy, under the new government, is seen as market-friendly and likely to boost investor confidence. However, business activity, which is similar to output in the manufacturing sector, is currently low due to suppressed domestic and external demand. The employment index in the sector has remained steady but below the neutral 50 mark, indicating challenging conditions. Supplier deliveries, an inverted index, are also falling but still within expansionary territory. For an improvement in the employment index, permanent job growth is necessary. Overall, while there are challenges, the Ghanaian economy's prospects remain positive.
Manufacturing PMI: The latest Manufacturing PMI report indicates a slowdown in business activity within the sector, with prices remaining stable due to fuel price cuts and a stronger rand.
The latest Purchasing Managers' Index (PMI) report indicates a slowdown in business activity within the manufacturing sector. This downturn could be a reflection of the current economic climate, as there's not a lot of activity going on in the manufacturing value chain. Additionally, the report showed that prices have been relatively contained, despite a stronger rand. The fuel price cuts and the continued strength of the rand have contributed to this price stability. Overall, the PMI report suggests that the manufacturing sector is experiencing a period of low activity, which could have wider implications for the economy as a whole.