South African manufacturing sentiment eases in May, Absa PMI shows

JOHANNESBURG, June 1 (Reuters) - ‌South Africa's ​factory ​sentiment eased in May as activity and demand slowed, though it ‌remained in expansionary territory for a second ⁠consecutive month, a purchasing managers' index (PMI) survey showed ‌on Monday.

• The seasonally ‌adjusted PMI sponsored by South African bank Absa fell to 50.8 from 52.6 in ​April.

• A reading above 50 indicates expansion in business activity.

• "In April, manufacturers benefitted ⁠from demand being brought forward in anticipation of further cost ​increases, but this effect faded in May," said Absa in a statement.

• It ​added that both activity ‌and demand softened, while input costs which have been pushed higher ⁠by a weaker rand and higher international oil prices continued to pose challenges for manufacturers.

• Production ⁠slipped back into contraction, with the business activity ​index falling to 43.5 from 52.8. New sales orders also retreated to 44.6 from 52.9.

• "Some respondents warned ‌that the recent weakness in demand could persist in the coming months," ‌said Absa.

• An index tracking expected business ⁠conditions in six ‌months rose above ​the 50 threshold to 52.9 from 47.4.

(Reporting by Sfundo Parakozov;Editing by Olivia ‌Kumwenda-Mtambo)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• SK Hynix to pay 60% of employee bonuses in company stock under preliminary deal, says source
• China's Shanghai eases housing policies to spur demand
• StanChart turns to hedge fund strategies to shield wealth clients from volatility