South Africa Factory Activity Returns to Growth: Absa

2026-05-04 09:20 By Luisa Carvalho 1 min. read

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 52.6 in April 2026 from 49 in March, signaling a renewed expansion in factory activity for the first time since last September.

Activity grew at its fastest pace since October 2024, driven by a rebound in output and new orders amid stronger domestic demand, while exports declined.

"Some respondents indicated that orders may have been brought forward in anticipation of further cost increases, potentially resulting in weaker demand in the months ahead,” Absa noted.

Meanwhile, input costs picked up amid a weaker rand and higher international oil prices linked to the Middle East war.

“Elevated input costs are likely to squeeze profit margins and could limit the sustainability of the recent improvement in activity,” the bank said, adding that they may also add to inflationary pressures.

Lastly, the sub-index tracking expected business conditions edged up but stayed below 50, underscoring subdued confidence.



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South Africa Factory Activity Returns to Growth: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 52.6 in April 2026 from 49 in March, signaling a renewed expansion in factory activity for the first time since last September. Activity grew at its fastest pace since October 2024, driven by a rebound in output and new orders amid stronger domestic demand, while exports declined. "Some respondents indicated that orders may have been brought forward in anticipation of further cost increases, potentially resulting in weaker demand in the months ahead,” Absa noted. Meanwhile, input costs picked up amid a weaker rand and higher international oil prices linked to the Middle East war. “Elevated input costs are likely to squeeze profit margins and could limit the sustainability of the recent improvement in activity,” the bank said, adding that they may also add to inflationary pressures. Lastly, the sub-index tracking expected business conditions edged up but stayed below 50, underscoring subdued confidence.
2026-05-04
South Africa Factory Activity Shrinks for 6th Month: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 49 in March 2026 from 47.4 in February, but the reading still pointed to the sixth consecutive month of contraction in the country’s manufacturing sector. "The PMI results overall suggest South Africa's manufacturing sector has not yet experienced a significant slowdown due to the US-Israel war against Iran, but price pressures have intensified sharply", Absa said. New orders remained weak, reflecting subdued demand, while slower supplier deliveries pointed to ongoing supply chain and logistical challenges. Meanwhile, input costs were pushed higher by a weaker rand and higher international oil prices. Lastly, the sub-index tracking expected business conditions posted its steepest drop ever, reflecting worries about the impact of the Iran conflict on costs and demand.
2026-04-01
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