South African manufacturing conditions still depressed, Absa PMI shows
JOHANNESBURG, April 1 (Reuters) - A South African purchasing managers' index (PMI) survey showed that conditions in the manufacturing sector remained depressed in March, but there was a slight improvement in sentiment thanks to better demand.
The seasonally-adjusted PMI sponsored by South African bank Absa rose to 48.7 points in March from 44.7 in February, but it remained below the 50-point mark that separates expansion from contraction.
"While the headline PMI remained in contractionary territory for a fifth consecutive month, this is the highest reading since the 52.6 points recorded in October," Absa said in a statement.
There was an improvement in the business activity sub-index as export sales helped demand recover.
But Absa said scheduled power cuts and strained South Africa-U.S. relations were likely putting a dampener on the mood.
President Donald Trump has cut U.S. financial assistance to South Africa, citing disapproval of the country's approach to land reform and its genocide case against Washington's close ally Israel at the World Court.
Businesses also fear South Africa's preferential trade status under the U.S. African Growth and Opportunity Act could be under threat with Trump in the White House.
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