Barclays has partnered with the Bureau for Economic Research at Stellenbosch University in support of South Africa’s monthly manufacturing Purchasing Managers’ Index (PMI), a leading economic indicator.

Previously known as the Kagiso PMI, the Barclays Purchasing Managers Index (PMI) is an established and important indicator of business conditions in South Africa.

Jeff Gable, Head of Africa non-equity research at Barclays Africa, said: “The PMI is a reliable leading indicator for actual South African manufacturing production as well as trends in the broader economy.”

Barclays’ support for the index is in recognition of the importance of the manufacturing sector, which contributed 13.9% to South Africa’s gross domestic product last year.

It is also in recognition of the importance of the PMI in monitoring the health of the sector.

Prof Ben Smit, Director of the Bureau for Economic Research at Stellenbosch University, said: “The survey has sound academic foundations and is compiled on a monthly basis by the BER in association with the Chartered Institute of Purchasing and Supply Southern Africa (CIPS)."

“Since its inception in 1999, the manufacturing PMI has become one of the key releases on the monthly data calendar and is used by business people, analysts and policy makers,” he said.

Released on the first working day of every month, the index is compiled based on a survey of purchasing managers in the manufacturing sector.

The survey gauges monthly changes in business conditions including production, sales orders and employment, among other factors.