This is according to the ABSA Purchasing Manager’s Index (PMI) contracted for the eighth consecutive month.

The index, which measures the health of the sector, increased by 5.4 points to 48.5 index points in June.

However, the data suggests that local demand conditions have improved and cost pressures have eased.

The index shows that business activity declined in the same period, while sales orders increased due to recovering domestic demand although export volumes remain near the lowest levels seen this year.

The purchasing price index fell by 2.38 points to 58.1 due to a stronger rand and lower diesel prices at the start of June.

At the same time, the index tracking expected business conditions in six months’ time was unchanged at 62.5, maintaining the highest level since the end of 2024.

--SABC--