(Bloomberg) -- Sentiment among South African manufacturers soured for a second month in December as weak domestic demand, declining export sales and logistical disruptions weighed on industries.
Absa Group Ltd.’s purchasing managers’ index, compiled by the Bureau for Economic Research, fell to 46.2 from 48.1 in November, the Johannesburg-based lender said Wednesday in an emailed statement.
The business activity sub-index dropped to 40.3, the lowest since August, while a gauge of new-sales orders declined to 37.4, also the weakest since then.
The index on expected business conditions in six months increased to 67.6, the highest since September.
“The December PMI results underscore the challenges facing South Africa’s manufacturing sector,” Absa said. “However, the improvement in future expectations suggests manufacturers remain hopeful for a recovery in 2025.”
Sentiment eased despite the state-owned power company managing to maintain a consistent power supply, and a cut in borrowing costs by the central bank in late November, a move that raised expectations of increased consumer spending.
©2025 Bloomberg L.P.