JOHANNESBURG Aug 1 (Reuters) – South Africa’s seasonally
adjusted Purchasing Managers’ Index rose above the key 50 level
in July, but the outlook for the manufacturing sector remains
under pressure from declining exports to China and Europe, a
survey showed on Wednesday.
The index gained 2.8 index points to 51 in July –above the
50 mark which differentiates expansion from contraction–
compared to 48.2 in June.
However survey sponsor Kagiso Tiso Holdings sounded caution
about jobs in the industry, with the employment sub index in the
PMI only managing a marginal increase.
“This confirms that employment prospects in the local
manufacturing industry remain limited and are expected to
persist for the remainder of this year,” Kagiso said.
Unemployment statistics on Tuesday showed the sector shed
44,000 jobs in the second quarter of this year.
(Reporting by Xola Potelwa)
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