The sector, which has been battered by load shedding, among other things, remained in a contractionary state after dipping marginally from 47.6 index points in June to 47.3 in July.
The last data from Stats SA showed inflation at the factory gate had moderated significantly in June, to 4.8% year-on-year from 7.3% in MayThe manufacturing sector had a setback at the start of the third quarter, after forfeiting some of the gains made in June, according to the latest Absa Purchasing Managers’ Index .
The last data from Stats SA showed inflation at the factory gate had moderated significantly in June, to 4.8% year-on-year from 7.3% in May. On a monthly basis, the producer price was also down, by 0.3% in June. Lack of demand has put a damper on the sector and general economic activity on the back of high interest rates and an inflation rate that is on the upper end of the inflation band. This resulted in the new sales orders index losing ground for a second consecutive month.
Internationally, conditions have worsened, with a negative impact on domestic and global demand. S&P Global Ratings found that business activity had slipped to a five-month low in the US, while the UK slowed to near-stagnation and the Eurozone fell into a steeper decline.In addition, disruptions caused by the delays associated with the torching of numerous trucks on the N3 transport corridor and other routes during July could be behind the drop in new sales orders, the survey found.
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