South Africa’s manufacturing sector contracted sharply in November, with sentiment hitting its lowest level this year, Reuters reported.

The monthly purchasing managers’ index (PMI), compiled by Absa Bank, fell to 42.0 from 49.2 in October, well below the 50-point threshold that separates expansion from contraction.

The decline reflects persistent weaknesses in both domestic and export demand. Absa said the survey showed production and new orders falling, despite modest employment gains and easing cost pressures, signalling continuing fragility in the country’s industrial base.

Export sales, a critical component for the continent’s most industrialised economy, have been sluggish since late 2024, while domestic consumption has cooled after a short-lived recovery in the third quarter, Reuters noted.

There were, however, tentative signs of optimism. A sub-index tracking expected business conditions over the next six months inched up to 50.8, suggesting that manufacturers anticipate a gradual recovery, although it remains below the long-term average.