October’s Absa PMI reports worrying decline in manufacturing sentiment

Latest reading suggests manufacturing remains under pressure due to subdued domestic demand

- YOGASHEN PILLAY

ABSA Purchasing Managers' Index (PMI) for October 2025 released on Monday raised alarm bells with the index indicating a decline in manufacturing sentiment.

(SUPPLIED)

ABSA Purchasing Managers’ Index (PMI) for October 2025 released on Monday raised alarm bells with the index indicating a decline in manufacturing sentiment.

Absa said that the seasonally adjusted PMI declined by 1.6 points to 49.2 in October, reversing the gain seen in September when the index reached 50.8.

The Index said the latest reading suggests that the manufacturing sector remains under pressure, with respondents pointing to subdued domestic demand, sluggish exports, and persistent logistical challenges as key headwinds.

“On the export front, demand is also sluggish, complicated by the rise in US trade tariffs and logistical challenges. The business activity index decreased by 5 points to 49.4 in October, slipping back into contractionary territory for nine of the ten months in 2025. However, October activity remains the second-highest reading for 2025, following 54.4 points in September.”

Professor Bonke Dumisa, an independent economic analyst, said the negative Absa PMI of 49.2 in October 2025 from 50.8 in September 2025 is not surprising, due to lingering doubts whether the trajectory of our economic growth rates changed from negative to positive as the positive PMI in September may have indicated.