S. Africa’s manufacturing activity rises in April – PMI

South African manufacturing saw a boost in April, according to Reuters citing a Purchasing Managers’ Index (PMI) survey released on Thursday, with the absence of power cuts throughout the month contributing to the improvement.

The seasonally-adjusted PMI climbed to 54.0 points in April, up from 49.2 in March, surpassing the crucial 50-point threshold that signifies expansion.

“Through April, South Africa experienced no load-shedding, which would have been positive for economic activity,” Absa, which sponsors the PMI, said in a statement, using a local term for power cuts.

While operating conditions for manufacturers improved overall, export sales remained subdued compared to domestic orders, and feedback from some participants indicated that demand still lagged.

Furthermore, Absa mentioned this cautious sentiment despite the uptick in manufacturing activity.

Eskom, the state power utility, hinted at an improved generation outlook last week, suggesting that it would likely to minimise power cuts during the winter months, typically spanning from April to August.