Manufacturing activity in South Africa declined in March, as indicated by the Purchasing Managers’ Index (PMI), Reuters reported on Tuesday.
Respondents cited sluggish demand as a contributing factor to the downturn.
The seasonally-adjusted PMI dropped to 49.2 points in March from 51.7 in February, falling below the crucial 50-point threshold that separates expansion from contraction.
Absa, the sponsor of the PMI, noted that while the index has shown fluctuations in recent months, the average for the first quarter of the year matches that of the final quarter of the previous year. Despite this, the sector managed a slight quarter-on-quarter expansion of 0.2 per cent in the fourth quarter of last year, according to Absa’s statement.
One positive aspect of the survey was that respondents expressed the most optimism about expected business conditions since the beginning of 2023.
