South Africa’s manufacturing activity improved for a second consecutive month in October, rising 0.9 points to 49.6 from a revised 48.7 in September, remaining strictly in contraction territory.
The latest purchasing managers’ index (PMI) survey, compiled by the Bureau for Economic Research and sponsored by Absa, showed that persistent domestic demand deficits and structural logistics bottlenecks restrained output growth.
Reading below the 50.0 neutral benchmark for a fifth consecutive month, the latest index signals that the nation’s industrial economy is experiencing a fragile and uneven recovery process.
Sub-index metrics reflected modest structural momentum, with the business activity indicator advancing to 48.6 points and the new sales orders index rising to 46.8 points during the month under review.
Export demand demonstrated minor improvements, while the supplier deliveries index remained virtually unchanged at 58.1 points, underscoring ongoing freight transport delays across state-operated rail corridors and maritime ports.
Cost pressures intensified sharply across manufacturing operations, pushing the purchasing price index up to 73.7 points from 71.1 in September, driven by rising fuel expenses and domestic currency volatility.
Business outlook metrics deteriorated despite gains in current operational data, as the index tracking expected business conditions in six months dropped to 51.7 points from 55.3 in September.
Executive confidence was further weighted down by regional political uncertainty surrounding upcoming municipal elections scheduled for November 4, alongside broader macroeconomic headwinds affecting domestic demand across key supply chains.
