PMI slips on power blips

Activity in the manufacturing sector contracted for the first time in four months as business activity plummeted, signalling a sector "taking strain", according to Kagiso Asset Management head of research Abdul Davids.

The Kagiso purchasing managers index, which gauges activity in manufacturing, fell by a steeper-than-expected 6.6 points to 47.6 last month. Below 50 suggests contraction in activity.

Load-shedding would remain "a key constraint" as interruptions in supply affected production and directly dampened demand, Davids said.