JOHANNESBURG (Reuters) -South African manufacturing sentiment deteriorated in August after a short-lived improvement in July, as activity remained subdued and both domestic and export demand were sluggish, a purchasing managers’ index (PMI) survey showed on Monday.
The seasonally-adjusted PMI sponsored by South African bank Absa fell to 49.5 points in August from 50.8 in July.
A reading below 50 indicates a contraction in activity, while above 50 signals growth.
New sales orders fell sharply, dropping 8.5 points to 47.4 points, as respondents referred to tariffs hurting exports even if they were not directly impacted.
U.S. President Donald Trump imposed a 30% tariff on South African exports to the U.S. last month, the highest rate in Sub-Saharan Africa, a move that could cause tens of thousands of job losses in sectors like agriculture and carmaking.
The sub-index tracking business activity decreased by 1.3 points to 45.8 in August, partly due to increased competition from cheaper imports.
The supplier deliveries sub-index also fell, but respondents said that was “due to declining orders, not as a result of improvements on the logistical front”.
State logistics company Transnet struggles to provide adequate freight rail and port services, hampering key industries like mining.
($1 = 17.5632 rand)
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Alexander Winning)
