Manufacturing sentiment improved in September, driven by strong domestic demand, Absa's purchasing managers' index (PMI) survey showed on Wednesday.
The seasonally adjusted PMI rose to 52.2 points in September from 49.5 in August.
It was only the second time this year that the PMI has been above 50 points, reflecting an expansion in activity.
"The domestic market drove the recovery as global demand remained under pressure and is complicated by steep US tariffs, a challenging trading environment and lingering SA port issues," Absa said in a statement accompanying the survey’s results.
US President Donald Trump imposed a 30% tariff on SA exports to the US in August, the highest rate in Sub-Saharan Africa, a move that could cause tens of thousands of job losses in sectors such as agriculture and car making.
The business activity and new sales orders sub-indices rose strongly, reflecting the rebound in local demand.
But another sub-index pointed to slower deliveries, as respondents cited logistical hurdles such as export paperwork delays, and one tracking expected business conditions in six months’ time dropped sharply.
Absa said there was growing uncertainty about the near-term outlook given global headwinds.
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