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[FILE] The logo of South Africa’s Absa bank is seen outside an Absa branch in Cape Town, South Africa, March 10, 2020.
The manufacturing sector in South Africa is facing challenges, with ABSA’s Purchasing Managers’ Index (PMI) declining to 48.1 index points in November 2024, down from 52.6 in October.
ABSA stated that the 4.5-point drop reflects some loss of momentum in the sector’s recovery seen over the past two months.
“This is not unexpected because the PMI has tended to be volatile this year. While local inflation and interest rates have come down, demand remains unpredictable,” the bank explained.
The index, which measures the health of the manufacturing sector, highlights ongoing challenges such as volatile demand and cost pressures. ABSA noted that while global demand offers some relief, a weaker rand and domestic uncertainties continue to weigh on the sector’s performance.
The results underscore the fragility of the recovery in the manufacturing industry.
ABSA PMI experiences a slight dip:
