JOHANNESBURG Oct 1 (Reuters) – South Africa’s seasonally
adjusted Purchasing Managers’ Index fell into contractionary
territory in September, a survey showed on Monday, hitting its
lowest level in 14 months and pointing to weak manufacturing
production in the third quarter.
The index lost four index points to 46.2 in September,
slipping below the 50 mark which separates expansion from
contraction for the first time since June this year, survey
sponsor Kagiso Tiso Holdings said. This was its weakest showing
since July 2011.
“The pullback does not bode well for actual factory sector
output in Q3,” said Andre Coetzee, managing director of the
Chartered Institute of Purchasing and Supply.
The decline in the domestic PMI matches trends in the
factory sectors of South Africa’s key trading partners, with
China’s September reading coming in at 49.8, while the index for
the euro zone also remains below 50.
(Reporting by Stella Mapenzauswa; Editing by Agnieszka Flak)
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