
South Africa’s manufacturing sector turned the corner in September, with the purchasing managers’ index rising to 50.7 from 45.8 in August. The reading moved above the 50-point threshold that separates expansion from contraction, ending three consecutive months of contraction. The growth was driven by a strong rebound in new orders, with the new sales orders index rising to 50.8 from 40.3. The business activity index also recovered, reaching 49.3 from 40.2. However, the improvement was uneven. Actual business activity remained just below the expansion threshold, employment weakened, and order backlogs remained subdued. Shipping delays at Durban port also continued to constrain manufacturers, while input-cost pressures intensified during the month. Despite these challenges, manufacturers were cautiously optimistic, with the six-month expectations index edging up to 55.3 from 54.7.
