Latest news with #GlobalManufacturingPMI
IOL News
a day ago
- Business
- IOL News
Mining sector shows signs of recovery with significant rise in iron ore output
Data from Statistics South Africa (Stats SA) on Tuesday revealed that mining production rose by 0.2% year-on-year in May, rebounding slightly after a sharp 7.7% decline in April. Image: Supplied Mining activity in South Africa rebounded slightly in May and ended a six-month streak of contraction, buoyed by a double-digit production expansion of iron ore. Data from Statistics South Africa (Stats SA) on Tuesday revealed that mining production rose by 0.2% year-on-year in May, rebounding slightly after a sharp 7.7% decline in April. Stats SA's principal service statistician, Jean-Pierre Terblanche, said the rise was mainly driven by iron ore, which expanded by 12.5%, adding 1.7 percentage points to overall mining growth. The increase in platinum group metals (PGMs) output in May is more a base effect, following production disruptions in April. Moreover, gold, chromium ore, nickel and other metallic minerals added a further 0.8 of a percentage point (combined) to the headline number. 'Nickel, diamonds, chromium ore, cobalt, and gold also reported positive year-on-year growth rates in May. Several minerals were weaker, including manganese ore, coal and platinum group metals,' Terblanche said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The positive overall mining growth performance in May augurs well for quarterly production of the mining sector. On a month-on-month basis, seasonally adjusted mining production increased by 3.7% in May compared with April, following a revised flat reading in the previous month. In the three months ended May, mining production increased by 2.6% compared with the previous three months. Investec economist Lara Hodes said manufacturing conditions globally picked up in June, according to the results of the JP Morgan Global Manufacturing PMI survey, which is supportive of industrial demand going forward. According to S&P Global, elevated uncertainty around the extent and effect of tariffs on global growth persists and remains a downside risk. 'Bulk mineral exports continue to be impacted by the country's logistical challenges, including port and rail inefficiencies, leading to billions of rands in lost revenue. Creating a world-class logistics system to drive export growth remains a key priority of the government,' Hodes said. 'Dealing with the other challenges that impede the country's competitive position remains imperative. Specifically, according to the President of the Minerals Council 'South Africa's mining industry remains a cornerstone of economic stability and progress' and it 'continues to play a pivotal role in job creation, foreign exchange earnings and industrial growth'. Meanwhile, minerals sales earnings measured in current prices soared by 18.8% in May compared to twelve months ago. Leading the surge was gold sales which increased by a mammoth 338.7%. This is explained by a 40% increase in the gold price when compared to a year ago The gold price has reached record levels this year as a safe haven investment amid a global environment faced with elevated geopolitical and trade tensions. Gold sales earnings increased by an eye-catching 338.7% (year-on-year), from R4.9 billion to R21.3bn. Minerals Council senior economist, Bongani Motsa, said continued volatility in global markets emanating from the US tariff regime continue to affect demand for minerals, impacting prices. 'In such an environment the gold price should remain well supported. Gold is viewed as a safe haven investment instrument. Most of South Africa's mineral exports to the US are currently exempt from the tariffs, except for diamonds and iron ore,' Motsa said. 'The tariffs are likely to increase auto prices in the US, resulting in risking lower total demand. If realised, the decline in demand for autos in the US will likely affect PGMs production in the short- to medium term via a reduced demand for autocatalytic converters.' BUSINESS REPORT
IOL News
11-06-2025
- Business
- IOL News
Manufacturing in dire straits as production plummets 6. 3% year-on-year
The manufacturing sector's poor performance aligns with the Absa Purchasing Managers' Index, which moved further into contractionary territory in April Image: Supplied South Africa's manufacturing production nosedived 6.3% year-on-year in April 2025, worse than economists had expected, although in line with a global slowdown in the production side of most economies. Statistics South Africa released data that showed that food and beverages were hardest hit as a subsector, declining 7.6% and slicing off 1.8 percentage points from the headline figure. This follows an already unfavourable performance in the first quarter, where manufacturing dragged down gross domestic product. Manufacturing was, at one point, considered the backbone of the country's industrialisation efforts and a critical employer of semi-skilled workers. The sector, which accounts for about 14% of GDP, employs about 1.6 million South Africans. Basic iron and steel, non-ferrous metal products, metal products and machinery's decline resulted in a negative contribution of 1.4 percentage points, while the motor vehicles, parts and accessories and other transport equipment sector slumped a staggering 13%, removing another 1.2 percentage points. The petroleum, chemical products, rubber and plastic products division also contracted by 4.7%, further dragging down the overall figure by an additional percentage point. While there was a slight month-on-month increase of 1.9% in April compared to March, the three-month trend shows a 1.4% decrease, with seven out of ten manufacturing divisions reporting negative growth. Investec economist Lara Hodes described the decline as "notable" and worse than a Bloomberg consensus expectation of a 4.5% year-on-year drop. "The decline was broad based, with all sectors except the glass and non-metallic mineral products grouping declining year-on-year," she said. She highlighted that within the food and beverages segment, the beverages and other foods sub-categories were largely responsible for the notable decline. The manufacturing sector's poor performance aligns with the Absa Purchasing Managers' Index, which moved further into contractionary territory in April, said Hodes. Citing the Bureau for Economic Research, Hodes added that 'the index tracking export sales returned to contractionary levels'. Thanda Sithole, FNB senior economist, said 'Operating conditions for domestic manufacturers remain unfavourable'. Statistics South Africa's figures show a picture similar to that of the rest of the world, with Hodes noting that "manufacturing operating conditions globally deteriorated for the first time in four months in April," citing the JP Morgan Global Manufacturing PMI survey. New orders decreased, trade conditions worsened, jobs were cut, and business optimism slumped, JP Morgan found. IOL
IOL News
06-06-2025
- Business
- IOL News
South Africa's exports face decline amid economic challenges
All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. Image: Supplied All indications were that exports are set to slow given the current economic climate, recent indicators, as well as surveys showing that manufacturing operating conditions are deteriorating. This is according to Investec economist, Lara Hodes, who said that the trade account surplus was likely to decrease further. On Thursday, the South African Reserve Bank (SARB) said that South Africa imported more than it exported during the first quarter of the year, although the country benefitted from the rand price of exported goods and services increasing more than that of imports when it comes to terms of trade. Hodes noted that a pending decline in exports ahead was based on data such as the Absa Manufacturing Purchasing Managers' Index (PMI) for April, which noted that the data tracking export sales returned to contractionary levels. In addition, according to the results of the JP Morgan Global Manufacturing PMI survey, global 'manufacturing operating conditions deteriorated' in April, with 'new export orders suffering its steepest decrease since August 2023,' Hodes said. She also noted that survey data from JP Morgan provided evidence of further potential weakness. Hodes said that globally, heightened levels of uncertainty around tariffs persist. S&P Global, she said, has indicated that the damage to confidence stemming from the radical shift in US trade policy, along with its unpredictability, is likely to linger, which will weigh on trade and growth prospects. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Trade balance trend Image: SARS/Investec The central bank said in its release that South Africa's trade surplus narrowed slightly by R5.2 billion as the value of merchandise imports increased more than that of goods exports. 'The increase in the value of imports and exports of goods and services in the first quarter of 2025 reflected both higher volumes and prices,' the central bank explained. It added that the current account deficit as a ratio of gross domestic product (GDP) remained broadly the same at 0.5% from the fourth quarter of 2024 to the first quarter of 2025. However, the agency noted that 'South Africa's terms of trade, including gold, improved in the first quarter of 2025 as the rand price of exported goods and services increased more than that of imports'. IOL
Business Insider
01-06-2025
- Business
- Business Insider
3 Economic Events That Could Affect Your Portfolio This Week, June 2-6, 2025
Here are three key economic events that could affect your portfolio this week. For a full listing of additional economic reports, check out the TipRanks Economic Calendar. Confident Investing Starts Here: » May's S&P Global Manufacturing PMI – Monday, 06/2 – This report measures business activity in the manufacturing sector, a critical component of U.S. GDP. As a leading economic indicator, this index provides timely insight into current and future economic conditions. Investors closely monitor this data for signs of strength or weakness in industrial output, which can influence corporate earnings, inflation trends, and Fed policy expectations. » May's S&P Global Services PMI – Wednesday, 06/4 – This report gauges activity in the services sector, which accounts for more than two-thirds of the U.S. economy. This index is closely watched as a bellwether of broader economic momentum. Because it reflects both consumer and business sentiment, movements in the Services PMI often precede shifts in overall economic performance. » May's Nonfarm Payrolls and Unemployment Rate – Friday, 06/06 – The Nonfarm Payrolls and Unemployment reports present the number of new jobs created during the previous month, along with the percentage of people actively seeking employment in the previous month. These reports are two of the most important economic indicators, as the shift in the number of positions since it is strongly associated with the overall health of the economy. One of the Federal Reserve's mandates is full employment, and it considers labor market changes when determining its policy decisions.
Al Etihad
12-03-2025
- Business
- Al Etihad
Global economic expansion maintains momentum as Manufacturing PMI strengthens
9 Mar 2025 17:53 REDDY (ABU DHABI)The global economy continued to grow in February, with the J.P. Morgan Global Composite PMI coming in at 51.5. Although this was a slight dip from January's 51.8, the index stayed well above the neutral 50.0 mark, indicating growth for the 25th month in a row. The manufacturing sector played a significant role in this growth, as the Global Manufacturing PMI hit an eight-month high of 50.6, up from 50.1 in February, the global manufacturing sector moved further into expansion territory. The growth of manufacturing production picked up speed, reaching its fastest rate since June 2024, driven by a stronger influx of new business. Production in the consumer and intermediate goods sectors increased, while investment goods production stabilised after a prolonged period of decline. The rise in new orders was the fastest in nearly three years, signaling improved demand Parrish, Global Economist at J.P. Morgan, noted: "The global manufacturing output PMI continued to rise in February, increasing by 0.9 points to an eight-month high of 51.5. The output improvement last month was accompanied by slightly more modest gains in the new orders and employment components of the surveys. A rise in the orders-to-inventory ratio to a three-year high of 1.06 aligns with signs of broadening growth momentum.'The service sector remained in expansion but at a slower pace. While it continued to outperform manufacturing, the gap between the two sectors narrowed in February. Growth slowed in business and consumer services, contrasting with an acceleration in the financial services to the J.P. Morgan global all-industry PMI, Parrish said: 'Still, at 51.5, the level of the output index remains consistent with global growth continuing at a trend-like pace early this year. A large sectoral gap between manufacturing and services looks to have fully closed in February and the US is no longer outperforming the rest of the world."New business orders increased for the 16th consecutive month, although at a slower rate than in January. Encouragingly, all six monitored sub-sectors, which include both services and manufacturing industries, reported growth for the first time since May business expectations remained in positive territory, with manufacturing sector optimism rising to a nine-month high. The orders-to-inventory ratio, often an indicator of future production cycles, climbed to its highest level in nearly three years. Despite some regional disparities, key economies including India, Indonesia, Brazil, and the United States recorded strong PMI readings, further reinforcing confidence in sustained global economic expansion. While February's overall composite PMI signalled a slight moderation in growth, the renewed strength in manufacturing offers a positive outlook. As global businesses navigate evolving economic conditions, the continued expansion of both the manufacturing and service sectors points to resilience and adaptability in the face of changing market dynamics. With improved new orders, strengthening business confidence, and broad-based growth across key sectors, the global economy is poised for sustained momentum in the coming months.
