Manufacturing sector recovers

FACTORY production saw its second biggest monthly increase in September on the back of vast improvements in new sales orders.

The Kagiso Trust's purchasing managers index (PMI), an indicator of factory production, saw an 8,7 point jump in September from 39,3 in the previous month to 48,0.

Kagiso head of fixed income securities André Coetzee said yesterday: "September's results are showing signs of life in the domestic manufacturing sector for the first time since the collapse of US investment bank Lehman Brothers in September 2008."

All near-term demand indicators had also showed similar increases, with the inventories index improving from 37 points in August to 47,6 points in September.