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South African manufacturing activity fell for the second month in a row in December, a local purchasing managers’ index (PMI) survey showed, as demand declined.
The seasonally-adjusted PMI sponsored by South African bank Absa slipped to 46.2 points in December 2024 from 48.1 points in November, remaining below the 50-point mark that separates expansion from contraction of manufacturing output in Africa’s most industrialised economy.
“The manufacturing sector experienced a volatile 2024, with this second consecutive monthly decline in December reversing the upward momentum seen in September and October,” Absa said in a statement.
The business activity index fell 8,7 points to 40.3, and the new sales orders sub-index also fell.
“Worryingly, some respondents noted that conditions in December 2024 were worse than usually seen in December,” Absa added.
But the bank said the sub-index which measures expected business conditions in six months’ time rose in December, showing that manufacturers remain positive about future business conditions.
Export sales figures fell to levels seen in the first half of 2024, while the supplier deliveries index moved above 50 points for the first time in three months.
Online Reporter