South African factory conditions deteriorate further, Absa PMI shows
A gauge of South African manufacturing sentiment fell further in May, with survey respondents citing persistent logistical issues that have held back demand.
The seasonally-adjusted Purchasing Managers' Index (PMI) sponsored by Absa declined to 43.1 points from 44.7 in April.
It was the seventh straight month that the headline PMI has been below 50, reflecting a deterioration in business conditions.
One bright spot was the subindex tracking expected business conditions in six months' time, which increased to the highest level since the start of the year as global tariffs were suspended and firms expressed optimism that local political disagreements over policy would be resolved.
'The May PMI results underscore the fragile state of South Africa's manufacturing sector,' Absa said.
'While forward-looking sentiment has improved, underlying demand and activity levels remain weak and structural logistical challenges persist.'
State-owned logistics group Transnet struggles to provide adequate freight rail and port services due to equipment shortages, maintenance backlogs and damage to its infrastructure from theft and vandalism.
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