Manufacturing declined into contractionary territory from 50.8 to 47.3 index points on Wednesday according to the Absa Purchasing Managers’ Index (PMI) in June 2026.
Manufacturing declined into contractionary territory from 50,8 to 47,3 index points on Wednesday according to the Absa Purchasing Managers’ Index (PMI) in June 2026. Experts said that Middle East tensions have impacted the PMI.
Absa said that the survey took place after the US and Iran signed a memorandum of understanding to end hostilities in the Middle East and reopen the Strait of Hormuz, which led to a significant decline in the Brent crude oil price.
Absa added that the PMI’s purchasing price index declined sharply by 13,5 points to 71,3 in June. “This suggests that April and May may have marked the peak of price pressures, particularly given the fuel price reductions that came into effect on Wednesday.”
Absa said that while front-loaded orders contributed to improved demand in March and April, respondents suggested this dropped off in May.
