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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
MNI (London)
- SOUTH AFRICA JUL MANUF. PMI 47.6 (FCST 50.3); JUN 52.2
- The Absa manufacturing PMI fell for the second consecutive month in July, dipping a substantial 4.6 points to 47.6 (vs forecast of 50.3) as new orders fell sharply.
- This is the lowest since the July 2021 plunge (due to KwaZulu-Natal and Gauteng unrest) and below the breakeven point of 50, signalling a contraction in the manufacturing industry.
- The slide in production was likely the result of widespread electricity shortages in July, as well as a global slowdown in manufacturing as growth outlooks cloud over.
- This lead expected business conditions to fall for the first time since Q2 2020.
- The price index saw the slowest increase since the beginning of the year, alluding to easing producer price pressures.
- Absa note that this data is largely from surveys prior to the announcement of energy reforms, which saw the ZAR outperform on Friday and should improve optimism going forward.
- As such, there was no real market reaction to the data, as the SARB is not due to meet again until September.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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