5 December 2010 | Lindsay Clark
The South Africa Kagiso PMI bounced
back into positive territory in November, the survey of buyers showed.
Figures from research organisation Kagiso
revealed the index jumped by three points to reach 52.9 last month. November’s
gain followed two consecutive months of below the 50 no change mark. A figure
below 50 indicates a contraction in activity.
Within the research, the business activity
index posted a robust gain of 6.1 index points reaching 54.8 in November. This
was a stark improvement on October, when performance was weak, but not as weak
as August and September which suffered strike-induced declines.
New sales orders also showed signs of
optimism, reaching 56.5 in November, five points up on the previous month’s
Meanwhile evidence suggests purchasing
managers believe the improved conditions will last. The expected business
conditions index gained 4.3 points and came in at 64.6 in November, the highest
level since April.
Employment was the only measure to remain in
negative territory, although it did show improvement. It rose by 2.8 index
points to 47.6.
Input purchasing prices also picked up in
November with the PMI price index increasing to 61.8, up by 5.4 index points
compared to October. “Given that the long-term average for the index is just
below 69 points, the November reading is still some way below the average and
points to fairly benign input cost pressure,” the report said. “However, the
November gain may reflect the higher crude oil price witnessed over the past