S. African manufacturing activity contracts in Nov. ’24

South Africa’s manufacturing sector contracted in November, with the Absa Purchasing Managers’ Index (PMI) falling to 48.1 from 52.6 in October, dropping below the 50-point mark that separates expansion from contraction.

Both business activity and new sales orders declined, reversing recent gains. Absa noted, “While local inflation and interest rates have come down relative to earlier in the year, demand remains unpredictable,”

The bank added that global demand offered some support in November but flagged risks from a weaker rand and domestic uncertainties. “The global political outlook has become more complicated with concerns about global growth and trade dynamics following the election of Donald Trump as US president earlier in November,” Absa said.

Attribution: Reuters

Subediting: M. S. Salama