October 03, 2022 09:45 GMT
SOUTH AFRICA SEP ABSA MANUF. PMI 48.2; AUG 52.1
- The South African manufacturing PMI re-entered contractive territory in September, after the surprise expansion in August.
- The disruptions in electricity supply were cited as the cause for declining production and were more disruptive than in August. Load-shedding caused weaker demand elsewhere along production and retail chains, generating a chain-reaction.
- New sales orders fell sharply as a result and business confidence weakened further, however, cost pressures continued to cool for the third successive month.
- South African CPI is set to cool for the second consecutive month in the September data from +7.6% y/y in August, underpinning confidence in the SARB's tightening cycle.
- The Absa PMI anticipates modest Q3 growth in manufacturing, following flooding disruptions in Q2 and strict lockdowns/looting in the same period last year.