By Sfundo Parakozov.
South Africa’s factory sentiment eased in May as activity and demand slowed, though it remained in expansionary territory for a second consecutive month, a purchasing managers’ index (PMI) survey showed on Monday.
The seasonally adjusted PMI sponsored by South African bank Absa fell to 50.8 from 52.6 in April.
A reading above 50 indicates expansion in business activity.
“In April, manufacturers benefitted from demand being brought forward in anticipation of further cost increases, but this effect faded in May,” said Absa in a statement.
It added that both activity and demand softened, while input costs which have been pushed higher by a weaker rand and higher international oil prices continued to pose challenges for manufacturers.
Production slipped back into contraction, with the business activity index falling to 43.5 from 52.8. New sales orders also retreated to 44.6 from 52.9.
“Some respondents warned that the recent weakness in demand could persist in the coming months,” said Absa.
An index tracking expected business conditions in six months rose above the 50 threshold to 52.9 from 47.4.
© 2026 Reuters.