SA manufacturing sentiment improved in July, the Absa purchasing managers index (PMI) showed on Friday, pointing to improved business conditions in the sector for the first time in nine months.
The seasonally adjusted PMI rose to 50.8 points in July from 48.5 in June.
It was the first time the headline PMI has been above the 50-point mark that separates expansion from contraction since October 2024.
The rise was driven by a recovery in demand, with the new sales orders subindex rising 9.8 points to 55.9 points, the third consecutive month of improvement.
But subindices tracking employment and expected business conditions in six months’ time fell by six points and 6.1 points, respectively, suggesting a full recovery in the sector is still some way off.
Absa said in a statement that this was an indication of growing caution over issues like volatile global trade policy.
SA faces a 30% tariff on its exports to the US starting next week, a move expected to cost tens of thousands of jobs after it failed to secure a trade deal before a deadline set by US President Donald Trump.
Reuters
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