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Lockdown, riots interrupted economic recovery - Absa

2 August 2021 6:27 PM
Tags:
The Money Show
Bruce Whitfield
Absa
Manufacturing
Absa Purchasing Managers
Miyelani Maluleke

The Money Show’s Bruce Whitfield interviews Miyelani Maluleke, an economist at Absa.
  • The ABSA PMI fell to 43.5 points in July (from June’s 57.4) to its weakest level since May 2020

  • Absa expects “a bit of a bounce” next month


Asif Raza, business owner in Umkomaas, KwaZulu-Natal lost his supermarket to the week of violence and looting. Picture: Abigail Javier/Eyewitness News

Absa’s Purchasing Managers’ Index (PMI) suffered a record single-month decline of almost 14 points in July.

It’s now at its weakest level in 14 months.

The weak numbers reflect stricter lockdown regulations and recent unrest in parts of KwaZulu-Natal and Gauteng.

The Absa PMI is a monthly survey of purchasing managers in South Africa's manufacturing sector.

It provides leading indications of business conditions in the sector.

The Money Show’s Bruce Whitfield interviewed Miyelani Maluleke, an economist at Absa (scroll up to listen).

The recovery we saw… being interrupted… due to a combination of shocks in July… This is the lowest we’ve seen since the hard lockdown last year…

Miyelani Maluleke, economist - Absa

We are optimistic that we should see a bit of a bounce… the rioting and looting have been brought under control… Lockdown restrictions have been lifted a bit…

Miyelani Maluleke, economist - Absa

It’s difficult to understand from this data, how much of the damage is permanent… That picture will emerge in the next few months…

Miyelani Maluleke, economist - Absa



2 August 2021 6:27 PM
Tags:
The Money Show
Bruce Whitfield
Absa
Manufacturing
Absa Purchasing Managers
Miyelani Maluleke

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