4 July 2023
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) declined by 1.6 index points to 47.6 in June 2023. This is the lowest level since mid-2021.
For the first time since 2018, all five subcomponents used to calculate the headline PMI were below the neutral 50-point level, pointing to a worsening of business conditions in the sector. A key drag on the sector seems to come from weak demand, with the new sales orders index edging down once again as the decline in export sales deepened and domestic demand remains under pressure. The index declined from 47.5 in May to 45.6 in June.