Absa PMI Reports Growth in South African Factory Activity for September, According to Reuters

South African Manufacturing Activity Shows Recovery in September

JOHANNESBURG (Reuters) – Manufacturing activity in South Africa saw an uptick in September, bouncing back from a decline in the previous month. This improvement has been attributed to increased demand and a recent interest rate cut that bolstered market sentiment, according to the latest purchasing managers’ index (PMI) survey sponsored by Absa.

The seasonally adjusted PMI for the manufacturing sector climbed to 52.8 points in September, up from 43.6 in August, surpassing the 50-point threshold that indicates growth.

"Both domestic and export demand demonstrated signs of recovery… On the local consumer side, the recent interest rate reduction has raised hopes for improved demand moving forward," Absa stated in its report.

The positive PMI results reflect a stabilization within the manufacturing sector after a challenging period, although persistent issues remain, especially regarding employment, as noted by Absa.

The index’s notable increase of 9.2 points in September more than compensated for the previous month’s decline of 8.8 points.