South African manufacturing facility sector contracts for second consecutive month in December, Absa PMI exhibits

JOHANNESBURG (Reuters) – South African manufacturing exercise fell for the second month in a row in December, a neighborhood buying managers’ index (PMI) survey confirmed, as demand declined.

The seasonally-adjusted PMI sponsored by South African financial institution Absa slipped to 46.2 factors in December 2024 from 48.1 factors in November, remaining under the 50-point mark that separates growth from contraction of producing output in Africa’s most industrialised financial system.

“The manufacturing sector skilled a risky 2024, with this second consecutive month-to-month decline in December reversing the upward momentum seen in September and October,” Absa mentioned in a press release.

The enterprise exercise index fell 8.7 factors to 40.3, and the brand new gross sales orders sub-index additionally fell.

“Worryingly, some respondents famous that situations in December 2024 have been worse than normally seen in December,” Absa added.

However the financial institution mentioned the sub-index which measures anticipated enterprise situations in six months’ time rose in December, displaying that producers stay constructive about future enterprise situations.

Export gross sales figures fell to ranges seen within the first half of 2024, whereas the provider deliveries index moved above 50 factors for the primary time in three months.