2026.02.0210:06:05UTC+00South Africa Factory Activity Downturn Eases: Absa

In January 2026, South Africa witnessed an increase in its seasonally adjusted Absa Purchasing Managers’ Index (PMI), rising to 48.7 from a previous low of 40.5 in December, marking the weakest performance since April 2020. Despite this being the fourth straight month of contraction in the manufacturing sector, the rate of decline has lessened considerably. This improvement can largely be attributed to a revival in business activity, as evidenced by the relevant sub-index climbing to 51.4 from December’s 46.1. Although new sales orders saw continued contraction, they did so at a slower pace, coming in at 45.4. January experienced a marked deterioration in export conditions, with levels falling to the lowest point since the onset of the Covid-19 pandemic. Inventory levels saw a significant increase, jumping 11.1 points to 47.2 from 36.1 in December, although they remain below the 50-point threshold. The employment index witnessed a slight recovery to 43.9 from 39.9 and is still the weakest of all sub-indices. Business confidence experienced a slight dip to 66.4, yet it remains substantially higher than the 2025 average, reflecting optimism for growth in the coming six months.