The Absa PMI for December signals that manufacturing is still under pressure as weak factory activity at the end of 2025 points to a soft fourth quarter, amid subdued demand for manufacturing goods.
However, Jee-A van der Linde, senior economist at Oxford Economics Africa, says although they do not expect demand conditions to improve meaningfully in 2026, South Africas broader price environment remains favourable.
The seasonally adjusted Absa PMI declined by 1.5 percentage points to 40.5 in December, signalling that the manufacturing sector remains under pressure. Sharp drops in the inventories and employment indices were the main drivers of the weaker headline reading.
