Absa Pmi Shows Decline In Manufacturing Sector

The manufacturing sector in South Africa is facing challenges, with ABSA's Purchasing Managers' Index PMI declining to 48.1 index points in November 2024, down from 52.6 in October.

ABSA stated that the 4.5-point drop reflects some loss of momentum in the sectors recovery seen over the past two months.

"This is not unexpected because the PMI has tended to be volatile this year. While local inflation and interest rates have come down, demand remains unpredictable," the bank explained.

The index, which measures the health of the manufacturing sector, highlights ongoing challenges such as volatile demand and cost pressures. ABSA noted that while global demand offers some relief, a weaker rand and domestic uncertainties continue to weigh on the sector's performance.

The results underscore the fragility of the recovery in the manufacturing industry.