Manufacturing Sector Returns To Contraction In August

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In a setback for the South African manufacturing sector, the Absa Purchasing Managers Index slid back into contraction by 1.4 points to 49.5 points in August.

The decline reversed some of the previous months gains that saw the index climb above 50 points. A reading below the neutral 50-point mark indicates a contraction.

The downturn in August was led by a reversal in new sales orders, which dropped 8.5 points to 47.4.

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