SA manufacturing slows

JOHANNESBURG – South Africa’s manufacturing activity slowed in September but remained strong and should be supported by a weaker currency, according to the country’s Purchasing Managers Index.

The PMI index fell to 56,3 in September from a revised 58,9 in August, on a seasonally adjusted and annualised basis, sponsors Investec said yesterday. “Despite the fact that new sales orders moderated further and output followed suit, it is still to early to blame the recent interest rate hikes for the apparent moderation in growth,” Andre Roux, head of fixed income at Investec Asset Management, said.”However, the level of the rand exchange rate should support the manufacturing sector in the coming months,” he said in a statement, referring to a 21 per cent trade-weighted slide in the value of the currency so far this year.The central bank has hiked its repo rate by one percentage point since June and further hikes are expected.Manufacturing accounts for more than 16 per cent of Africa’s biggest economy.Investec said the seasonal factors used in the indices were recalculated, resulting in revisions of previous monthly data.The revisions show the PMI reacted a peak of 60,7 in July.Nampa-Reuters”Despite the fact that new sales orders moderated further and output followed suit, it is still to early to blame the recent interest rate hikes for the apparent moderation in growth,” Andre Roux, head of fixed income at Investec Asset Management, said.”However, the level of the rand exchange rate should support the manufacturing sector in the coming months,” he said in a statement, referring to a 21 per cent trade-weighted slide in the value of the currency so far this year.The central bank has hiked its repo rate by one percentage point since June and further hikes are expected.Manufacturing accounts for more than 16 per cent of Africa’s biggest economy.Investec said the seasonal factors used in the indices were recalculated, resulting in revisions of previous monthly data.The revisions show the PMI reacted a peak of 60,7 in July.Nampa-Reuters

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