South Africa’s manufacturing activity improved in October, but power cuts and a crippling strike at freight rail and ports company Transnet hampered the recovery, a survey showed on Tuesday, November 1.
Source: Reuters/Siphiwe Sibeko/File photo
Absa’s seasonally adjusted Purchasing Managers’ Index (PMI) was at 50.0 in September from 48.2 in October, hitting the 50-point mark that separates it from contracting.
“Exports have remained weak during the months-long crippling Transnet strike, while global demand is slowing,” Absa said in a statement.
Since October 6, state-owned Transnet workers have gone on strike for nearly two weeks, halting exports from the industrialized African nation.
PMI respondents said constant power outages by Eskom have limited demand for products and their products.
In October, purchasing managers’ outlook for the business since May 2020 was very pessimistic, perhaps showing little hope that the energy situation will improve soon, Absa said.
South Africa’s power outages are at an all-time high this year.
