Manufacturing sentiment in SA plummets amidst global trade tensions, local uncertainty

APRIL proved to be a challenging month for South Africa’s manufacturing sector as the latest Purchasing Managers’ Index (PMI), conducted by the Bureau for Economic Research (BER) and sponsored by Absa, reported a significant decline, dropping to 44.7 points from March's 48.7.

- SIPHELELE DLUDLA

This latest survey reflected mounting concerns among industry participants, underpinned by global trade tensions and a turbulent local political environment.

Manufacturing businesses across the nation faced deepening challenges, most notably illustrated by the sharp decrease in both business activity and new sales orders.

The business activity index nosedived from 48.3 to a concerning 40, whilst new sales orders fell even more dramatically by 12.8 points to a subdued 36.1, indicating waning demand both domestically and internationally.

The BER highlighted worrying trends, noting that the index tracking export sales has returned to contractionary levels, aggravated by excessive rains that hampered production for some manufacturers.

"Global tariff developments and local political uncertainties related to the VAT saga and ongoing government disagreements undoubtedly weighed on sentiment," Absa explained in a statement.