The Kagiso Purchasing Managers Index (PMI), a measure of the strength of the manufacturing sector, dropped to 51.1 points in May from 55.2 points in April.

Any number above 50 is, however, a sign of growth. The declining index in May points towards the shrinking growth rate of the manufacturing sector. This declining growth rate is also in line with current international trends.

André Coetzee, Kagiso’s head of fixed income, did note that the decline could partly be attributed to the industrial action led by Transnet in the month of May.

Reported by Engineering News