Factory output on the way up

THE purchasing managers' index climbed to its highest level in a year-and-a-half in October, pointing to a manufacturing sector edging towards growth.

THE purchasing managers' index climbed to its highest level in a year-and-a-half in October, pointing to a manufacturing sector edging towards growth.

Sponsor Kagiso Securities said yesterday the key indicator of factory activity rose to 47,6 last month, up from a revised 45,9 in September.

Kagiso said while the manufacturing sector continued to lag international developments, a sustained improvement in global prospects should see the key sector returning to growth, aided by the rand's gains over the past two weeks.

"If the rand sustains the slight weakening bias, it could also assist the speed of recovery in SA's manufacturing production volumes," Kagiso said. - Reuters

X