A closely watched survey of South African manufacturers showed a further decline in business activity in June, pointing to lingering weakness in Africa’s most industrialised economy.
South Africa’s new President Cyril Ramaphosa is trying to reverse a decade of economic stagnation under his predecessor, Jacob Zuma.
But recent economic data, including first quarter gross domestic product and mining output, have disappointed.
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 47.9 points last month from 49.8 in May amid declines in new orders, business activity and employment, Absa said in a statement on Monday.
Among factors weighing on manufacturers’ minds, the statement cited controlled power outages by state utility Eskom, fears of a global trade spat and rising cost pressures linked to a weaker rand.
