South Africa’s Manufacturing Activity Declines in December 2024

JOHANNESBURG (Reuters) – South African manufacturing activity fell for the second month in a row in December, according to a local purchasing managers’ index (PMI) survey, as demand declined.

The seasonally-adjusted PMI sponsored by South African bank Absa slipped to 46.2 points in December 2024 from 48.1 points in November, remaining below the 50-point mark that separates expansion from contraction in manufacturing output in Africa’s most industrialized economy.

“The manufacturing sector experienced a volatile 2024, with this second consecutive monthly decline in December reversing the upward momentum seen in September and October,” Absa said in a statement.

The business activity index fell 8.7 points to 40.3, and the new sales orders sub-index also declined.

“Worryingly, some respondents noted that conditions in December 2024 were worse than usually seen in December,” Absa added.

However, the bank noted that the sub-index measuring expected business conditions in six months rose in December, indicating that manufacturers remain positive about future business conditions.

Export sales figures fell to levels seen in the first half of 2024, while the supplier deliveries index moved above 50 points for the first time in three months.