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Firms said customer orders decreased due to increasing price pressures, load shedding, drought conditions and wider economic uncertainty. <\/p>\n\n\n\n
On a more positive note, orders from foreign clients dropped at the softest rate in eight months. <\/p>\n\n\n\n
However, weaker sales combined with capacity issues led to a solid reduction in output, with the contraction the quickest seen in 2024 so far. <\/p>\n\n\n\n
Firms also gave their lowest expectations for future output in three months, even if optimism remained strong overall. <\/p>\n\n\n\n
Although lower client demand led to reduced input needs, firms dropped their input purchases only marginally in March. <\/p>\n\n\n\n
Firms also raised their inventories for the third straight month, with reports suggesting that supply chain delays and price concerns caused some to hold inputs in reserve.<\/p>\n\n\n\n
“Delays to input deliveries continued in March, primarily due to the ongoing port crisis in Durban, with many firms facing hold-ups on imported goods,” S&P Global said. <\/p>\n\n\n\n
“That said, the rate at which lead times lengthened was the softest for six months<\/strong>, as some panellists noted that freight backlogs were starting to improve<\/strong>.” <\/p>\n\n\n\n Absa also noted an improvement in delivery times in its own PMI, with the first signs that congestion at the local ports is easing somewhat.<\/p>\n\n\n\n