South Africa Factory Activity Contracts Again: Absa

2026-08-03 09:42 By Larissa Caser 1 min. read

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) dropped to 46.8 in July 2026 from 47.3 in June, contracting for a second consecutive month.

Domestic demand and production continued to recover, with shorter supplier delivery times.

Inventories declined further as firms remain uncertain that strong demand will persist, although some firms could be delaying purchases expecting lower input costs in the future.

Input cost pressures remain elevated relative to the pre-war period, with increases in diesel prices expected to put renewed pressures on costs.

Nevertheless, peak inflationary pressures have likely passed, barring any further upsurge in global energy costs.

Looking ahead, firms expect business conditions to weaken as renewed tensions in the Middle East push up oil prices, making firms questions the durability of recent improvements in activity.



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South Africa Factory Activity Contracts Again: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) dropped to 46.8 in July 2026 from 47.3 in June, contracting for a second consecutive month. Domestic demand and production continued to recover, with shorter supplier delivery times. Inventories declined further as firms remain uncertain that strong demand will persist, although some firms could be delaying purchases expecting lower input costs in the future. Input cost pressures remain elevated relative to the pre-war period, with increases in diesel prices expected to put renewed pressures on costs. Nevertheless, peak inflationary pressures have likely passed, barring any further upsurge in global energy costs. Looking ahead, firms expect business conditions to weaken as renewed tensions in the Middle East push up oil prices, making firms questions the durability of recent improvements in activity.
2026-08-03
South Africa Factory Activity Contracts in June: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) dropped to 47.3 in June 2026 from 50.8 in May, signaling renewed contraction in factory activity after two consecutive months of growth. This mainly reflected weaker demand, which weighed on new orders. Clients reportedly placed fewer orders as some customers delayed purchases in anticipation of lower prices, weighing on new business even as cost pressures eased. Nevertheless, confidence about future business conditions improved strongly amid lower oil prices. Absa said the survey was conducted after the US and Iran agreed an interim deal to end the conflict and reopen the Strait of Hormuz, which prompted a pullback in global oil prices. It added that a sharp decline in the PMI purchasing price component suggested April and May may have marked the peak of price pressures.
2026-07-01
South Africa Factory Activity Growth Cools: Absa
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 50.8 in May 2026 from 52.6 in the prior month, pointing to a second consecutive month of expansion, albeit significantly below April’s robust increase. The slowdown reflected fading demand brought forward in April, weaker new orders, and higher input costs driven by a softer rand and rising oil prices. Production moved back into contraction, with the index falling to 43.5 from 52.8. New sales orders also declined, slipping to 44.6 from 52.9. The index tracking expected business conditions in six months rose to 52.9 from 47.4 in the prior month.
2026-06-01