South African manufacturing mood improves in September, Absa PMI shows
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GUEST – Andiswa Nondudule - ABSA CIB Economist
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) increased by 2.7 points to 52.2 points in September, returning to expansionary territory for the second time this year. Absa also points out that, encouragingly, the average PMI for the third quarter rose to 50.8 points, from 45.4 points in the second quarter and 46.2 points in the first quarter.
It states, however, that the improvement has not been smooth, with volatility in the recovery of demand hampering sustained activity growth. "Indeed, the industry continues to face challenges, as export demand remains sluggish and is further complicated by US trade tariffs."
The business activity index increased by 12.1 points to 57.9 in August, moving into expansionary territory for the first time since October 2024, as strong demand recovery supported activity.
New sales orders increased significantly by 8.8 points to 56.1 in September, following a sharp drop of 8.5 points in August. Prior to July, the last time new sales orders had been in expansionary territory was in October 2024. "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 South Africa port issues," Absa notes.
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) increased by 2.7 points to 52.2 points in September, returning to expansionary territory for the second time this year. Absa also points out that, encouragingly, the average PMI for the third quarter rose to 50.8 points, from 45.4 points in the second quarter and 46.2 points in the first quarter.
It states, however, that the improvement has not been smooth, with volatility in the recovery of demand hampering sustained activity growth. "Indeed, the industry continues to face challenges, as export demand remains sluggish and is further complicated by US trade tariffs."
The business activity index increased by 12.1 points to 57.9 in August, moving into expansionary territory for the first time since October 2024, as strong demand recovery supported activity.
New sales orders increased significantly by 8.8 points to 56.1 in September, following a sharp drop of 8.5 points in August. Prior to July, the last time new sales orders had been in expansionary territory was in October 2024. "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 South Africa port issues," Absa notes.
