JOHANNESBURG - The September Absa Purchasing Managers’ Index for shows improved manufacturing sentiment.
The index returned to expansion for only the second time this year.
The seasonally adjusted PMI rose 2.7 points to 52.2%, with the third quarter averaging 50.8% up from 45.4% in the second quarter.
Business activity surged to its highest level since October last year, driven by strong domestic demand.
New sales orders also rebounded sharply, while supplier deliveries lengthened due to logistical challenges.
However, employment weakened as manufacturers remain cautious, and inventories dipped amid supply chain issues.
Input costs rose despite lower fuel prices, and business confidence fell to its lowest level this year, reflecting ongoing uncertainty.
These results highlight a fragile recovery, with production gains tempered by caution around hiring and investment.