The manufacturing sector in South Africa showed some improvement in June compared to May, according to the Absa Purchasing Managers Index (PMI). The headline PMI rose from 43.8 points to 45.7 points in June.
However, this is the second consecutive month that the PMI has remained below the 50-point mark. A PMI below 50 indicates the sector is in contraction, while a PMI above 50 points to expansion.
Absa noted that May and June have shown poor growth following a strong start to the second quarter.
Export sales have been below the neutral 50-point mark for four consecutive months. This has resulted in new sales orders remaining muted due to depressed demand conditions.
The index shows that business activity declined from 38.1 points to 36.3 points despite stable electricity supply.
