Absa PMI shows South African factory activity grows in September
5:03 am Tuesday, October 01st, 2024
JOHANNESBURG (Reuters) – South African manufacturing activity increased in September, recovering from the previous month’s slump as demand rose and an interest rate cut boosted sentiment, the Absa-sponsored purchasing managers’ index survey showed on Tuesday.
Absa’s seasonally adjusted PMI for the factory sector rose to 52.8 points in September from 43.6 in August, above the 50-point mark that shows growth.
“Both domestic and export demand showed signs of improvement… On the local consumer front, the recent interest rate cut adds to the expectation of a possible more positive demand story going forward,” local bank Absa, which sponsors the survey, said in a statement.
“The positive PMI results suggest that the manufacturing sector is stabilising after a turbulent period, although challenges remain, particularly in employment,” Absa said in a statement.
The 9.2-point jump in the index in September more than made up for the 8.8-point drop in August.
(Reporting by Tannur Anders; Editing by Bhargav Acharya and Hugh Lawson)
