JOHANNESBURG, May 4 – South Africa’s manufacturing sector returned to expansion in April, as output and demand recovered following a subdued first quarter, according to a purchasing managers’ index survey released on Monday.
The seasonally adjusted PMI, sponsored by Absa Group, rose to 52.6 from 49.0 in March, moving back above the 50-point threshold that separates contraction from growth for the first time since September 2025.
The improvement was driven by a rebound in core activity indicators. Business activity increased to 52.8 from 46.1, while new sales orders climbed sharply to 52.9 from 44.5, suggesting a pickup in demand across the sector.
However, the strength of the recovery may prove temporary. Absa noted that part of the increase in activity likely reflects front-loading of demand ahead of anticipated price increases, raising concerns about whether the momentum can be sustained in the coming months.
Cost pressures also intensified during the period. Input prices rose as a weaker domestic currency and higher global oil prices pushed up production costs, adding strain on manufacturers already operating in a challenging environment.
Despite the improvement in current conditions, forward-looking indicators remain subdued. Expected business conditions edged higher but stayed below the 50 mark, pointing to lingering caution among firms about the near-term outlook.
The data underscores a tentative recovery in South Africa’s manufacturing sector, though persistent cost pressures and fragile confidence suggest the rebound may face headwinds in the months ahead.
