JOHANNESBURG (Reuters) – South African manufacturers reported a deterioration in business conditions for the third month in a row in January, a local purchasing managers’ index (PMI) survey showed on Monday.
The seasonally-adjusted PMI sponsored by South African bank Absa slipped to 45.3 points in January from 46.2 in December, falling further below the 50-point mark that separates expansion from contraction.
Respondents flagged trade disruptions with Mozambique due to post-election unrest, fuel shortages affecting air freight and the upcoming closure of ArcelorMittal South Africa’s long steel business as issues affecting their current and future work.
“This suggests that the loss of momentum observed at the end of 2024 has not reversed at the start of the year. However, it was encouraging that activity and demand improved from low levels – albeit remaining in contractionary terrain,” Absa said in a statement.
(Reporting by Tannur Anders; Editing by Alexander Winning)
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