South African factory activity contracts again in June – Absa PMI
2024.07.01 05:33
JOHANNESBURG (Reuters) – South African manufacturing activity contracted again in June, a Purchasing Managers’ Index (PMI) survey showed on Monday, reflecting weak demand.
The seasonally-adjusted PMI for the factory sector was at 45.7 points in June compared to 43.8 in May. A reading above the 50-point mark shows growth.
“Many comments from respondents flag depressed demand conditions,” local bank Absa, which sponsors the survey, said in a statement.
Absa said uncertainty about the composition of South Africa’s new government in the wake of the May 29 election could have also weighed on business.
“This could have extended the ‘wait-and-see’ approach noted in May and delayed orders,” it said.
After weeks of intense deliberations, Ramaphosa announced his cabinet line-up on Sunday, bringing new coalition partners including the Democratic Alliance to his 32-minister government.
