South Africa Factory Activity Contracts in October: Absa

2025-11-03 10:13 By Natasha Rubio 1 min. read

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 49.2 in October 2025 from 50.8 in the previous month, indicating that the country’s factory activity has returned to contraction.

The business activity sub-index dropped by 5 points to 49.4 in October.

“Business confidence remains low as the sector continues to navigate external trade constraints, supply-side uncertainty, and cost volatility,” Absa said.

Signs of caution persisted as the sub-index tracking expected business conditions in six months declined by over 3 points to 46.1.

Meanwhile, the South African government is seeking to persuade US President Donald Trump to reduce the 30% tariff imposed on South African exports to the US in August, but no progress has been made so far.



News Stream
South Africa Factory Activity Shrinks for 5th Month: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 47.4 in February 2026 from 48.7 in January, marking the fifth consecutive month of contraction in the manufacturing sector. The downturn was slightly sharper, reflecting weaker business activity and continued job losses. Business conditions remained under pressure from port delays, localized power outages, and subdued demand. On a brighter note, the sub-index tracking anticipated business conditions showed improvement. "The stop-start nature of manufacturing output, also evident in official data, is not conducive to longer-term capacity expansion, investment growth or employment gains," Absa noted.
2026-03-02
South Africa Factory Activity Downturn Eases: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 48.7 in January 2026 from 40.5 in December, which was the weakest reading since April 2020. Although signaling a fourth consecutive month of contraction in manufacturing, the pace of decline eased notably. The improvement was primarily driven by a rebound in business activity, with the relevant sub-index rising above 50 to 51.4 from 46.1 in December. At 45.4, new sales orders continued to contract but at a reduced rate. Meanwhile, export conditions deteriorated sharply in January, with exports falling to their lowest level since the Covid-19 pandemic. The inventories index increased by 11.1 points to 47.2, from 36.1 in December, albeit still below 50 points. The employment index recovered modestly to 43.9 from 39.9 but remained the weakest sub-index. Business confidence edged down slightly to 66.4 but stayed well above the 2025 average, indicating expectations of improvement over the next six months.
2026-02-02
South Africa Factory Activity Contracts Faster in December
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell further to 40.5 in December 2025 from 42 in November. The latest reading signaled a third straight month of contraction in the country’s manufacturing sector, which was the steepest since April 2020, amid sharp declines in inventories and employment. The inventories sub-index dropped 9.9 points to 36.1, its lowest level since May 2020, while the employment sub-index fell 6.3 points, remaining well below the neutral 50-point mark and in contractionary territory since April 2024. "The weak performance in business activity and volatile sales orders continues to limit the scope for hiring, while shortages of specialised skills in certain niche industries also weigh on employment outcomes," said Absa.
2026-01-08