FX.co ★ South Africa Factory Activity Contracts in June: Absa

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 47.3 in June 2026 from 50.8 in May, indicating a renewed contraction in manufacturing activity after two consecutive months of expansion. The decline was driven largely by softer demand, which put pressure on new orders. However, business confidence regarding future conditions strengthened markedly, supported by lower oil prices. According to Absa, the survey was conducted after the United States and Iran reached an interim agreement to end the conflict and reopen the Strait of Hormuz, a development that helped push global oil prices lower.