South African manufacturing sentiment showed improvement in September, supported by stronger domestic demand, according to a purchasing managers’ index (PMI) survey released on Wednesday.
The seasonally-adjusted PMI, sponsored by Absa, rose to 52.2 points from 49.5 in August.
This marked only the second time this year that the index has climbed above the 50-point threshold, which signals an expansion in activity, Reuters reported.
“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.
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The report noted that U.S. President Donald Trump imposed a 30% tariff on South African exports to the United States in August, the steepest tariff rate in Sub-Saharan Africa, a decision that could potentially cost tens of thousands of jobs in industries such as agriculture and car manufacturing.
The survey highlighted strong increases in the business activity and new sales orders sub-indices, pointing to a rebound in local demand.
However, one sub-index revealed slower deliveries, with respondents citing logistical obstacles such as delays in export paperwork.
Another measure, tracking expected business conditions six months ahead, recorded a sharp decline.
Absa added that there is rising uncertainty about the near-term outlook given persistent global headwinds.
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