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Bleak picture for manufacturers

2 Sep 2011

Manufacturing activity in South Africa contracted in August although the Purchasing Managers' Index (PMI) was slightly higher at 46,7 points, still below 50 basis points, when there is a distinction between contraction and expansion according to an article published in Business Day.

The drop in the PMI in July - when it fell to just 44,2 points - could not be blamed solely on the spate of strikes that swept the country and sent a clear signal that times would remain tough for the rest of the year.

Manufacturing is the second-biggest sector in the South African economy and contributes about 16% to the country's overall output. The survey is carried out each month by the Bureau for Economic Research and the Chartered Institute of Purchasing and Supply.

Read the full report in Business Day.
View the results of the survey.