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08.01.202609:14:23UTC+00South Africa Factory Activity Contracts Faster in December

South Africa's seasonally adjusted Absa Purchasing Managers' Index (PMI) decreased to 40.5 in December 2025, down from 42 in November. This latest figure marks the third consecutive month of contraction in the country's manufacturing sector, representing the most significant downturn since April 2020. This decline is primarily attributed to sharp reductions in inventories and employment. Specifically, the inventories sub-index plummeted by 9.9 points to 36.1, its lowest point since May 2020. Meanwhile, the employment sub-index fell by 6.3 points, remaining deeply entrenched below the neutral 50-point threshold and in contraction territory since April 2024. According to Absa, "The weak business activity and volatile sales orders continue to constrain hiring opportunities, while a shortage of specialized skills in particular niche industries further impacts employment outcomes."

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