JOHANNESBURG, Sept 3 (Reuters) – South Africa’s seasonally
adjusted Purchasing Managers’ Index weakened in August, a survey
showed on Monday, pointing to weak demand which should weigh on
manufacturing output in the third quarter of this year.
The index lost 0.8 index points to 50.2 in August — barely
holding above the 50 mark which separates expansion from
contraction — from 51.0 in July, sponsor Kagiso Tiso Holdings
said.
The New Sales Orders index lost 5.3 points to 46.9 while the
Expected Business Conditions index shed 1.1 points to 52.9.
“We are seeing a clear downward trend in the demand for
factory goods,” said Abdul Davids, head of research at Kagiso’s
asset management division.
“Supply continues to exceed demand and this does not bode
well for manufacturing sector production.”
(Reporting by Stella Mapenzauswa; Editing by Tosin Sulaiman)
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