# South Africa’s manufacturing sector slipped back into contraction in August, with the Absa purchasing managers’ index falling to 49.5 points. New sales orders dropped sharply by 8.5 points following a brief rebound in July, while business activity remained weak at 45.8 points for the tenth consecutive month. Employment improved slightly but stayed below growth levels, reflecting ongoing challenges in domestic and global demand. On the positive side, input costs eased marginally, aided by a stronger rand and stable oil prices. However, overall manufacturing remains under strain.
Sharp drop in new orders signals tough month for manufacturing industry