The purchasing managers’ index rose to a seasonally adjusted 46.7 in August from a two-year low of 44.2 in July, sponsor Kagiso said on Thursday.
The index is a key number ahead of actual productivity numbers and provides insight into what the gross domestic product is likely to look like in the third quarter.
“From a GDP growth perspective, the most concerning part of the latest PMI numbers is the sharp deterioration in near-term demand, as well as the downbeat expectations for future business conditions,” Abdul Davids of Kagiso Asset Management said.
Expected business conditions fell to 53.7 in August from 59.5 in July.
PMI is in contraction territory for the second straight month and the average for the past two months is at 45.5, down sharply from the average of 55.3 for the first half of the year, Kagiso said. — Reuters