South Africa’s manufacturing sector experienced a decline in sentiment in October, weighed down by sluggish domestic demand and weak exports, according to a purchasing managers’ index (PMI) survey released on Monday.
The seasonally-adjusted PMI, sponsored by South African bank Absa, fell to 49.2 points in October from 50.8 in September, underlining “the fragility of the manufacturing recovery,” Absa said in a statement.
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The business activity sub-index declined by 5 points to 49.4, marking the ninth month this year that it has remained in contractionary territory, as seen on Reuters.
Another sub-index, which tracks expected business conditions over the next six months, dropped more than 3 points to 46.1.
“Business confidence remains low as the sector continues to navigate external trade constraints, supply-side uncertainty, and cost volatility,” Absa added.
In an effort to boost exports, South Africa’s government is lobbying U.S. President Donald Trump to reduce the 30% tariff imposed on South African exports to the United States in August, but no breakthrough has been reported so far.
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Image Credit: Reuters
