Lockdown, riots interrupted economic recovery - 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
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
Source : Picture: Abigail Javier/EWN