South Africa’s (SA) manufacturing sentiment deteriorated in October, dragged down by subdued domestic demand and sluggish exports, a purchasing managers’ index (PMI) survey showed on Monday.
The seasonally adjusted PMI sponsored by South African bank Absa fell to 49.2 points in October from 50.8 in September, highlighting “the fragility of the manufacturing recovery,” Absa said in a statement.
The business activity sub-index dropped by 5 points to 49.4, marking the ninth month this year it has been in contractionary territory.
Another sub-index tracking expected business conditions in 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 said.
SA’s government is trying to convince United States President Donald Trump to lower the 30% tariff he imposed on South African exports to the United States in August, but so far there has been no breakthrough.
–Reuters–
