Manufacturing sentiment improves as business conditions steady in July

THE S&P Global South Africa Purchasing Managers’ Index (PMI) edged up to 50.3 in July, from 50.1 in June, marking a slight but noteworthy improvement in the country's business conditions.

- SIPHELELE DLUDLA

This is in line with the latest seasonally adjusted Absa PMI, which increased by 2.3 points to 50.8 in July, following eight consecutive months in contractionary territory.

With three consecutive months of growth above the neutral 50.0 mark, the latest S&P Global PMI results suggest a stabilising environment despite ongoing economic challenges.

The index, which serves as a comprehensive indicator of the operating conditions in the private sector, reflects a blend of positive trends, particularly in new business and employment.

S&P said the growth was predominantly driven by an uptick in new orders, as several firms observed revitalised client activity.

Nevertheless, reports indicate that the broader economic landscape remains challenging, with various sectors experiencing divergent performances.

While the services and wholesale and retail sectors saw expansion, industries such as construction faced downturns. Furthermore, although domestic sales improved, new export business has dwindled for the fourth straight month, hinting at potential headwinds in international trade.