Key insights
- South African manufacturing PMI rebounded in April, driven by increased output and new orders. However, concerns remain about the sustainability of the recovery due to front-loading of demand and rising input costs from a weaker Rand and higher oil prices. Subdued business confidence persists, suggesting limited positive impact on US equities.
JOHANNESBURG, May 4 (Reuters) - A gauge of South African manufacturing sentiment improved in April as output and new sales orders rebounded after a weak first quarter, a purchasing managers’ index (PMI) survey showed on Monday.
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The seasonally adjusted PMI sponsored by South African bank Absa rose to 52.6 in April from 49.0 in March, returning to growth for the first time since September 2025.
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A reading above 50 signifies an expansion in business activity.
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"Some of this improvement likely reflects front-loading of demand ahead of expected price increases, raising questions about the sustainability of the recovery," said Absa in a statement.
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Business activity rose to 52.8 from 46.1, returning to expansionary territory, while new sales orders jumped to 52.9 from 44.5.
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However, input costs were pushed higher by a weaker rand currency and higher international oil prices.
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Expected business conditions improved slightly but remained below 50, pointing to subdued confidence.