South Africa’s purchasing managers’ index (PMI) jumped to a seasonally adjusted 60,4 in February, a near-three-year high, pointing to further recovery on the production side of the economy, a survey showed on Monday.
Sponsor Kagiso Securities said the key measure of manufacturing activity increased from 53,6 in January to its highest level since March 2007, beating the break-even 50 mark for the fourth consecutive month.
“The continued upward trend of the index during the first two months of 2010 points to a faster growth in actual factory production at the start of the year,” Andre Coetzee, head of fixed income at Kagiso Securities, said in a statement.
“[This suggests)]that manufacturing in all likelihood remained a key sector driving the overall growth in the first quarter of 2010.”
Official data last week showed a continued bounce in manufacturing boosted Africa’s biggest economy in the fourth quarter of 2009. The sector rose by 10,1%, helping the wider economy expand a faster-than-expected 3,2% quarter-on-quarter and annualised. — Reuters