JOHANNESBURG (Reuters) – South African manufacturing activity expanded at a faster pace in March compared to February, supported by stronger new sales orders, a survey showed on Friday.
The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) rose to 60.0 points in March from 58.6 points in February, remaining above the 50-point mark that separates expansion from contraction.
“Further improvements in new sales orders, and in turn business activity, underpinned the increase in the headline PMI,” Absa said in a statement accompanying the survey’s findings.
“On the demand front, export orders remained positive, while local demand may have benefited from the recovery in the tourism and hospitality sector and normalising business conditions in general.”
The tourism sector has in the past two years been hit by travel restrictions to curb the spread of the coronavirus, but the sector has since opened up after the restrictions were eased.
(Reporting by Olivia Kumwenda-Mtambo; Editing by Nqobile Dludla)
