FX.co ★ South Africa Factory Activity Growth Cools: Absa

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) eased to 50.8 in May 2026 from 52.6 in April, signaling a second consecutive month of expansion but at a much slower pace than the strong improvement seen previously. The loss of momentum largely reflected demand that had been brought forward into April, softer new orders, and rising input costs linked to a weaker rand and higher oil prices. Output slipped back into contraction, with the production index dropping to 43.5 from 52.8, while new sales orders also moved lower, falling to 44.6 from 52.9. In contrast, sentiment toward the outlook improved, with the index measuring expected business conditions in six months climbing to 52.9 from 47.4 in the previous month.