JOHANNESBURG (Reuters) -South African manufacturing sentiment improved in July, a survey showed on Friday, pointing to improved business conditions in the sector for the first time in nine months.
The seasonally-adjusted purchasing managers’ index (PMI) sponsored by South African bank Absa rose to 50.8 points in July from 48.5 in June.
It was the first time the headline PMI has been above the 50-point mark that separates expansion from contraction since October 2024.
The rise was driven by a recovery in demand, with the new sales orders sub-index rising 9.8 points to 55.9 points, the third consecutive month of improvement.
But sub-indices tracking employment and expected business conditions in six months’ time fell by 6 points and 6.1 points, respectively, suggesting a full recovery in the sector is still some way off.
Absa said in a statement that this was an indication of growing caution over issues like volatile global trade policy.
South Africa faces a 30% tariff on its exports to the U.S. starting next week, a move expected to cost tens of thousands of jobs after it failed to secure a trade deal before a deadline set by U.S. President Donald Trump.
(Reporting by Sfundo Parakozov;Editing by Alexander Winning)
