Africa-Press – South-Africa. Sentiment among South African manufacturers improved in June as a recovery in local demand boosted new sales.
Absa’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, rose to 48.5 in June from 43.1 in May, the Johannesburg-based lender said Tuesday in an emailed statement.
That means the PMI remained below the 50 level, which indicates an expansion for the eighth straight month.
The gauge tracking new-sales orders increased by 7.8 points to 46.1 during the month, from 38.3 in the prior period.
“While export sales recovered somewhat in June relative to May, volumes remain near the lowest levels seen this year,” Absa said. “This suggests that domestic demand boosted the large recovery in total new sales orders.”
The sub-index for business activity dropped to 41.9, from a previous 43.5, and the one for expected business conditions in six months’ time was unchanged at 62.5.
While the index continues to signal strain, “it is encouraging to note that the current level is the second-highest in 2025,” Absa said, noting that the gain in headline PMI was the largest increase since a 9-point jump seen between August and September 2024.
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