South Africa's manufacturing sector returned to expansion in April, with the Absa Purchasing Managers’ Index climbing to 52.6. This marks the first growth since September, up from 49 in March. The improvement stemmed mainly from stronger business activity and new sales orders.
The Absa Purchasing Managers’ Index (PMI) for South Africa's manufacturing sector edged above the neutral 50-point mark to 52.6 in April, according to data released on 4 May 2026. This seasonally adjusted figure signals expansion for the first time since last September, following a reading of 49 points in March.
The uptick was driven by a 6.7-point increase in the business activity index to 52.8, also returning to expansionary territory since late 2025. New sales orders saw a sharp recovery, with some strength attributed to firms bringing forward purchases ahead of expected price rises linked to the Middle East conflict, Absa stated.
Economist Miyelani Maluleke from Absa noted ongoing challenges. “The environment is a lot more challenging today than it was a couple of months for manufacturers. On the cost side, it’s pretty clear that the pressures are really big,” he said. He highlighted a significant rise in the input costs sub-index and recent announcements of petrol and diesel price hikes by the Department of Energy.
Despite the activity gains, the employment sub-index remained in contraction at 43.8, reflecting hiring caution. Maluleke warned that sentiment could dip below 50 in coming months due to the Middle East conflict potentially halting global growth, though domestic infrastructure reforms offer some positive fundamentals.
