South Africa’s Manufacturing Sector Faces Continued Decline in Activity
The Absa PMI for South Africa indicates a continued contraction in factory activity, dropping to 44.7 in February 2025. This is the fourth month of decline, caused by drops in business activity, demand, and supply chain disruptions. Export sales have also worsened due to global trade issues.
South Africa’s factory activity saw a decline for the fourth consecutive month, as indicated by the seasonally adjusted Absa Purchasing Managers’ Index (PMI), which dropped to 44.7 in February 2025 from 45.3 in January. This represents the steepest contraction observed since August 2024.
Manufacturers reported a downturn in business activity attributed to a decrease in demand and challenges in the supply of inputs, complicating production processes. Additionally, the ongoing issues surrounding export sales pushed them further into contraction due to lower-than-anticipated demand and complications from global trade disputes and logistics difficulties.
In summary, South Africa’s manufacturing sector is experiencing significant challenges, with the PMI indicating a continued decline in activity largely due to reduced demand and input supply issues. Export conditions remain problematic, driven by global market fluctuations and logistical hurdles, which need to be addressed to stabilize the industry.
Original Source: www.tradingview.com
