South African factory sector contracts in November, Absa PMI shows
2024.12.02 04:37
JOHANNESBURG (Reuters) – South African manufacturing activity fell in November, a local purchasing managers’ index (PMI) survey showed, as volatile demand conditions weighed on business activity.
The seasonally-adjusted PMI sponsored by South African bank Absa slipped to 48.1 points in November from 52.6 in October, falling below the 50-point mark that separates expansion from contraction.
The business activity and new sales orders sub-indices both fell last month, reversing the gains it made in September and October, Absa said.
“While local inflation and interest rates have come down relative to earlier in the year, demand remains unpredictable,” Absa said in a statement.
According to the bank, while global demand offered some support to South Africa’s manufacturing sector in November, a weaker rand and domestic uncertainties continue to pose risks going forward.
“The global political outlook has become more complicated with concerns about global growth and trade dynamics following the election of Donald Trump as US president earlier in November,” it added.
