South Africa’s manufacturing sentiment wanes in July

A reading below 50 indicates a deterioration in overall business conditions for manufacturers. Absa said the decline likely overstated the weakness in manufacturing, as both the business activity and new sales orders sub-indexes rose in July, helped by domestic demand.

Manufacturers were more downbeat about the outlook as the index tracking expected business conditions in six months’ time fell to 49.3 from 56.6 previously. “The renewed escalation of tensions in the Middle East, together with higher oil prices following June’s lows, likely contributed to the deterioration in sentiment,” Absa said in a statement.