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Absa PMI shows South African factory activity grows in September

Published 10/01/2024, 05:03 AM
Updated 10/01/2024, 05:06 AM
© Reuters. FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File photo

JOHANNESBURG (Reuters) - South African manufacturing activity increased in September, recovering from the previous month's slump as demand rose and an interest rate cut boosted sentiment, the Absa-sponsored purchasing managers' index survey showed on Tuesday.

Absa's seasonally adjusted PMI for the factory sector rose to 52.8 points in September from 43.6 in August, above the 50-point mark that shows growth.

"Both domestic and export demand showed signs of improvement... On the local consumer front, the recent interest rate cut adds to the expectation of a possible more positive demand story going forward," local bank Absa, which sponsors the survey, said in a statement.

© Reuters. FILE PHOTO: A general view shows the Tetra Pak factory floor in Durban, South Africa, April 4, 2024. REUTERS/Rogan Ward/File photo

"The positive PMI results suggest that the manufacturing sector is stabilising after a turbulent period, although challenges remain, particularly in employment," Absa said in a statement.

The 9.2-point jump in the index in September more than made up for the 8.8-point drop in August.

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