Manufacturing activity recovered slightly in June, with the seasonally adjusted Bureau for Economic Research (BER) purchasing managers’ index (PMI) – formerly known as the Kagiso PMI – rising to 51.4, up from 50.8 in May.
This brought the average for the second quarter to 49.2, slightly below the average of 49.9 recorded in the first quarter.
BER economist Lisette IJssel de Schepper said: "This suggests that the manufacturing sector has remained under pressure and that a solid recovery in output growth is unlikely."
PMI gauges activity in the manufacturing sector. A reading of above 50 suggests expansion and one under 50 indicates contraction.
The business activity index rose to 51.7 in June from 49.6 in May while the new sales orders index edged lower to 51.7 index points from 52.2 in May.
"While domestic demand remains under pressure, some respondents indicated that they had benefited from improved export orders," said Jssel de Schepper.
Higher production in June and slight increase in exports
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