JOHANNESBURG, Feb 2 (Reuters) – A gauge of South African manufacturing sentiment improved in January thanks to a pickup in business activity, though weak exports dragged down the headline index, a purchasing managers’ index (PMI) survey showed on Monday.
The seasonally-adjusted PMI sponsored by South African bank Absa rose to 48.7 points in January from 40.5 in December, moving closer to the 50-point mark that reflects an overall improvement in business conditions for manufacturers.
“The magnitude of this increase is significant,” Absa said in a statement accompanying the survey results.
The fact that the business activity sub-index rose above 50 “bodes well for manufacturing production after a more subdued fourth quarter,” the statement added.
But exports slumped to their lowest level since the height of the COVID-19 pandemic, suggesting that a recovery in new orders was solely driven by domestic demand, it continued.
An index tracking expected business conditions in six months’ time eased slightly, though it remained nearly 10 points above the 2025 average.
South Africa’s manufacturing output was volatile last year, as U.S. President Donald Trump’s tariff policies made the global economic backdrop highly uncertain.
(Reporting by Anathi Madubela;Editing by Alexander Winning)
