FX.co ★ South Africa Factory Activity Returns to Growth: Absa

In July 2025, South Africa's seasonally adjusted Absa Purchasing Managers' Index (PMI) rose to 50.8, marking a significant improvement from June's figure of 48.5. This increase signifies the manufacturing sector's re-entry into positive growth territory for the first time in nine months. The sector's expansion is largely attributed to a robust rebound in demand, with new sales orders climbing by 9.8 points to reach 55.9, marking the third straight month of improvement. Despite this growth, caution prevails as the indices for employment and expected business conditions dropped by 6 and 6.1 points, respectively, highlighting concerns about the unpredictability of global trade policies. Additionally, the sector is bracing for challenges such as a new 30% US tariff on South African exports set to take effect next week, a shift likely to result in the loss of tens of thousands of jobs due to the expiration of a trade agreement deadline set by US President Donald Trump.