2026.11.0209:31:56UTC+00South Africa Factory Activity Remains Under Pressure

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose for a second consecutive month, reaching 49.6 in October 2026 from a revised 48.7 in September. Although manufacturing activity continued to contract for a fifth straight month, the latest reading signalled the mildest pace of decline over this period. All five sub-components of the index improved, but overall business conditions remained weak.

The business activity index edged up to 48.6 points in October, building on a stronger gain recorded in September. The new sales orders index also increased for a second month in a row, rising to 46.8 points. This was supported by a further improvement in export sales, with that index moving closer to the neutral 50-point mark.

The purchasing prices index climbed to 73.7 points in October from 71.1 in September, likely reflecting a sharp increase in fuel costs along with continued rand depreciation. By contrast, the index tracking expected business conditions in six months’ time declined to 51.7 points in October from 55.3 in September, indicating a moderation in forward-looking optimism.