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The Barclays Manufacturing PMI (now often reported as the Absa PMI) provides an early snapshot of the manufacturing sector's performance in South Africa. It is derived from a survey of purchasing managers who report on changes in key business conditions compared to the previous month. The index is a leading indicator of economic trends, industrial output, and overall GDP growth. A reading above 50 indicates expansion, while a reading below 50 indicates a contraction in manufacturing activity.
The index is based on a monthly survey of purchasing managers in the South African manufacturing sector. It is a diffusion index calculated from five sub-components: business activity, new orders, employment, supplier deliveries, and inventories.
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