Factory activity at lowest level in 2026 as demand remains weak

Economics Editor

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Manufacturing activity remained depressed in August, with Absa’s purchasing managers’ index (PMI) declining further to 45.8 points from 46.8, its fourth consecutive month-on-month retreat.

The index — a measure of economic activity derived from a survey conducted by the Bureau for Economic Research (BER) on behalf of Absa — was at its lowest level so far this year, mainly due to a sharp deterioration in business activity, the index of which fell 8.6 points to 40.2.

The August report points to continued strain in the manufacturing sector, which has grappled with weak demand and higher input costs this year, including more expensive fuel as a result of the US-Iran war disrupting global oil supply. South Africa is a net importer of crude oil and petroleum products.