Business confidence among South Africa's manufacturing sector improved in September, ending three consecutive months of contraction, driven by a recovery in new orders, according to a Purchasing Managers' Index survey released on Thursday and cited by Reuters.
The seasonally adjusted PMI, sponsored by South African bank Absa, rose to 50.7 points in September from 45.8 points in August, crossing the 50-point threshold that separates expansion from contraction for the first time since May.
The new orders index climbed to 50.8 points from 40.3 recorded the previous month, while the business activity index recovered to 49.3 points from 40.2 in August, partially offsetting the sharp decline registered that month.
In a statement, Absa said that "the September PMI represents a welcome improvement after a weak winter period, particularly given the strong recovery in new orders."
However, the bank cautioned that individual indicators did not all move in a uniformly positive direction, noting that "business activity remained slightly below the neutral level, employment weakened, and outstanding orders continued at subdued levels."
Absa flagged shipping delays at the Port of Durban as one of the main logistical constraints yet to be resolved, adding that input cost pressures intensified in September.
Despite these challenges, manufacturers maintain moderate optimism regarding the sector's outlook. The index measuring expectations for business conditions over the next six months rose to 55.3 points from 54.7 previously.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/10/01/mundo/africa/africa-do-sul-confianca-empresarial-sobe-para-507-pontos-em-setembro/
