South African manufacturing sentiment fell in December to its lowest level for 2025, driven by steep declines in inventories and employment sub-indices, a purchasing managers’ index (PMI) survey showed on Thursday.
The seasonally-adjusted PMI sponsored by South African bank Absa fell to 40.5 points in December from 42.0 in November, concluding a year marked by predominantly contractionary readings in negative territory.
A reading below 50 indicates a contraction in activity, while above 50 signals growth.
The sub-index tracking employment decreased by 6.3 points in December, falling further below the neutral 50-point mark and remaining in contractionary territory since April 2024, Absa said in a statement accompanying the survey’s results.
“The weak performance in business activity and volatile sales orders continues to limit the scope for hiring, while shortages of specialised skills in certain niche industries also weigh on employment outcomes,” said Absa.
The inventories sub-index declined by 9.9 points to
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