Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2012-02-01/south-africa-pmi-climbs-in-january-bolstering-economic-recovery.html

Bloomberg News

South Africa PMI Climbs in January, Bolstering Economic Recovery

February 01, 2012

Feb. 1 (Bloomberg) -- South Africa’s purchasing managers’ index rebounded to a seven-month high in January, a sign that the recovery in manufacturing may be strengthening, Kagiso Tiso Holdings said.

The seasonally adjusted index rose to 53.2 from 49.4 in December, Johannesburg-based Kagiso said in an e-mailed statement today. The median estimate of 4 economists surveyed by Bloomberg was for the index to rise to 50.2. A number above 50 indicates an expansion in factory output.

“The expected business conditions index remains very optimistic,” Abdul Davids, Kagiso Asset Management’s head of research in Cape Town, said in the statement.

The recovery in manufacturing, which accounts for about 15 percent of the economy, may help to bolster gross domestic product, which expanded near a two-year low of 1.4 percent in the third quarter. The Reserve Bank kept its benchmark interest rate unchanged at a 30-year low of 5.5 percent in 2011 to support consumer spending and growth in Africa’s biggest economy.

The index measuring new sales orders increased 9 points to 57.3 last month and the business activity sub-index rose 3.9 points to 53.6, Kagiso said.

The price sub-index remained above 80 as “purchasing managers continued to indicate that input cost pressures are on the rise,” Davids said.

The Bureau for Economic Research, based at the University of Stellenbosch near Cape Town, and the Institute of Purchasing and Supply South Africa conduct the PMI survey on behalf of Kagiso.

--With assistance from Simbarashe Gumbo in Johannesburg. Editors: Nasreen Seria, Gordon Bell

To contact the reporter on this story: Andres R. Martinez in Johannesburg at amartinez28@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus