In December, sentiment among South African manufacturers fell for the second month in a row, influenced by sluggish domestic demand, declining export sales, and logistical challenges impacting numerous industries.

The purchasing managers’ index (PMI) from Absa Group, created in partnership with the Bureau for Economic Research, decreased to 46.2 in December, down from 48.1 in November, as per a statement from the Johannesburg-based bank released on Wednesday.

The business activity sub-index dropped to 40.3, reaching its lowest level since August, while new sales orders fell to 37.4, also the lowest for that period.

On a brighter note, the index showing expectations for business conditions in the next six months increased to 67.6, the highest since September.

“The December PMI results underscore the challenges faced by South Africa’s manufacturing sector,” Absa remarked. “However, the rise in future expectations suggests that manufacturers are hopeful for a possible recovery in 2025.”

Despite the reduction in confidence, the state-owned power utility has successfully ensured a stable power supply, and the central bank’s move to lower borrowing costs in late November has sparked hopes for increased consumer spending.

© 2025 Bloomberg

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