
South Africa’s manufacturing sector showed a modest improvement in October, with the Absa purchasing managers’ index rising to 49.6 from a revised 48.7 in September. The increase marked a second consecutive monthly improvement, and all five components of the index recorded gains. However, the reading remained below 50, the level separating expansion from contraction, signaling that factory conditions were still weakening overall. Business activity edged up to 48.6, while the new sales orders index reached 46.8, indicating continued pressure on production and demand. Absa described the recovery as fragile, citing weak domestic demand and logistics bottlenecks. Expectations for business conditions six months ahead also weakened, with the relevant index falling to 51.7 from 55.3. Absa said sustained demand, stronger production, and easing cost pressures would be needed for a durable recovery.
