South African manufacturers have taken a hit, with employment in the sector expected to take time to recover. <\/p>\n\n\n\n
The seasonally adjusted Absa Purchasing Managers\u2019 Index (PMI) started 2025 on the back foot, declining by 0.9 points to 45.3 points in January 2025. <\/p>\n\n\n\n
This is the third straight contraction and the lowest level since August 2024. <\/p>\n\n\n\n
“This suggests that the loss of momentum observed at the end of 2024 has not reversed at the start of the year,” said ABSA and the BER.<\/p>\n\n\n\n
“However, it was encouraging that activity and demand improved from low levels \u2013 albeit remaining in
contractionary terrain.” <\/p>\n\n\n\n
The business activity index improved by 3.2 points to 43.5 in January. <\/p>\n\n\n\n
The slight improvement in activity comes amidst signs of recovering demand as the new sales orders rose from 37.4 in December to 42 points. <\/p>\n\n\n\n
Export sales also recovered slightly. That said, the index remained below the November level. <\/p>\n\n\n\n
Respondents flagged some issues that were hurting production and demand. <\/p>\n\n\n\n
Although export sales recovered slightly, the index remained below the November level. Respondents also flagged some issues that were hurting production and demand. <\/p>\n\n\n\n
This included trade disruptions with Mozambique due to political turmoil and fuel shortages affecting air freight. <\/p>\n\n\n\n
The upcoming closure of ArcelorMittal\u2019s Long business in SA was flagged as potentially impacting some producers over the next six to 12 months.<\/p>\n\n\n\n
The closure is expected to affect 3,500 direct jobs, and have severe knock-on consequences for several sectors, such as the manufacturing sector. <\/p>\n\n\n\n