Strikes push PMI to two-year low

Industrial action weighed on the manufacturing sector in July 2011 with the Kagiso purchasing managers’ (PMI) index falling to a two-year low.

PMI hit 44,2 after dropping by 9,7 points in July 2011, according to statistics released on Monday.

The index, which measures the efficiency of the manufacturing sector, has decreased for the fourth straight month.

Industrial action was identified as the main driver of the decline, with the business activity index falling 19.3 index points in July to 35.9 — the biggest decline of all PMI sub-indices.

There was a strike in the metals and engineering sector from July 5 to 18, followed by another strike in the chemical, petrol, paper and pulp industry from July 11 that concluded on July 29.

Industrial action is currently being experienced in the mining sector, with 100 000 workers at AngloGold Ashanti, Gold Fields, Harmony Gold and another smaller mining group striking for higher wages.

“This is utterly atrocious — strike activity has weighed in but there is no doubt the economy is in a soft phase through weakened consumer activity and a measured global slowdown,” Kevin Lings, chief economisty at Stanlib, told Mail & Guardian.

Sub-indices such as new sales orders and inventories were the hardest hit, dropping 9,2 and ten points respectively, according to Kagiso’s report.

Job opportunities in the sector also waned, with the PMI employment index falling 8,6 index points to 39,1.

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


ConCourt settles the law on the public protector and interim...

The Constitutional Court said it welcomed robust debate but criticised the populist rhetoric in the battle between Busisiwe Mkhwebane and Minister Pravin Gordhan

Small towns not ready for level 3

Officials in Beaufort West, which is on a route that links the Cape with the rest of the country, are worried relaxed lockdown regulations mean residents are now at risk of contracting Covid-19

Press Releases

Covid-19 and Back to School Webinar

If our educators can take care of themselves, they can take care of the children they teach

5G technology is the future

Besides a healthcare problem Covid-19 is also a data issue and 5G technology, with its lightning speed, can help to curb its spread

JTI off to court for tobacco ban: Government not listening to industry or consumers

The tobacco ban places 109 000 jobs and 179 000 wholesalers and retailers at risk — including the livelihood of emerging farmers

Holistic Financial Planning for Professionals Webinar

Our lives are constantly in flux, so it makes sense that your financial planning must be reviewed frequently — preferably on an annual basis

Undeterred by Covid-19 pandemic, China and Africa hold hands, building a community of a shared future for mankind

It is clear that building a community with a shared future for all mankind has become a more pressing task than ever before

Wills, Estate Administration and Succession Planning Webinar

Capital Legacy has had no slowdown in lockdown regarding turnaround with clients, in storing or retrieving wills and in answering their questions

Call for Expression of Interest: Training supply and needs assessment to support the energy transition in South Africa

GIZ invites eligible and professional companies with local presence in South Africa to participate in this tender to support the energy transition

Obituary: Mohammed Tikly

His legacy will live on in the vision he shared for a brighter more socially just future, in which racism and discrimination are things of the past

The best local and international journalism

handpicked and in your inbox every weekday