South Africa’s Manufacturing Sector Declines Further as Absa PMI Hits 43.1 in May
In May 2025, South Africa’s manufacturing sector faced worsening conditions, with the Absa Purchasing Managers’ Index (PMI) dropping to 43.1, down from 44.7 in April. This ongoing decline, marked by seven consecutive months below 50, reflects chronic logistical issues that stifle demand, revealing the challenges faced by local businesses.
Deteriorating Manufacturing Conditions in South Africa
The seasonally-adjusted Purchasing Managers’ Index (PMI) for May dropped to 43.1, a sign of ongoing challenges in the manufacturing sector. This marks the seventh consecutive month below the neutral mark of 50.
Survey respondents attributed the decline to persistent logistical issues, which reportedly hindered demand and production. This highlights ongoing structural inefficiencies impacting the industry.
According to Absa, these results reveal a fragile state in South Africa’s manufacturing environment, emphasizing that while sentiment about future conditions has improved, activities remain subdued.
Future Outlook for South African Manufacturing
Despite the PMI’s decline, the sub-index tracking expected business conditions increased in May. This reflects a cautiously optimistic sentiment among businesses regarding upcoming political resolutions and global tariff suspensions.
Firms expressed a measure of optimism, allowing for a potential resurgence in manufacturing activity if logistical issues can be addressed. However, underlying demand continues to pose significant challenges.
Absa stated that while forward-looking sentiment appears more favorable, the actual business activity levels remain fragile. Transnet’s ongoing issues with logistics further compound the difficulties for manufacturers.
As South Africa’s manufacturing conditions continue to decline, the latest Absa PMI highlights ongoing logistical challenges that dampen demand and hinder recovery. Despite a slight uptick in future business optimism, the persistent issues facing the sector paint a concerning picture for the economy.
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