Commodities
Manufacturing Sector Hits Lowest Level This Year Amid Weak Demand and Rising Costs
The manufacturing sector in South Africa has hit its lowest level this year due to weak domestic demand and rising costs. The Absa purchasing managers' index (PMI) fell to 45.8 points in August, marking the fourth consecutive month of decline.
Business activity deteriorated sharply, with a fall of 8.6 points to 40.2, while new sales orders dropped from 44.1 to 40.3 points. Export sales showed some signs of resilience compared to July's performance but were still weak overall.
The purchasing price index remained unchanged at 67.2 points, indicating that costs remain a significant concern for manufacturers. This is due in part to the ongoing impact of the US-Iran war on global oil prices and South Africa's reliance on imported fuel.