The seasonally adjusted PMI for the factory sector was at 45.7 points in June compared to 43.8 in May.

A reading above the 50-point mark shows growth. "Many comments from respondents flag depressed demand conditions," local bank Absa, which sponsors the survey, said in a statement.

Absa said uncertainty about the composition of SA's new government in the wake of the May 29 election could have also weighed on business. "This could have extended the 'wait-and-see' approach noted in May and delayed orders," it said.

After weeks of intense deliberations, Ramaphosa announced his cabinet line-up on Sunday, bringing new coalition partners including the Democratic Alliance to his 32-minister government.

--Reuters--