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

South Africa's seasonally adjusted Absa Purchasing Managers' Index (PMI) experienced a decline, landing at 49.2 in October 2025, down from 50.8 in September. This figure suggests a return to contraction in the country's manufacturing sector. The business activity sub-index took a dip as well, decreasing by 5 points to reach 49.4 during the same period. "Business confidence remains subdued," commented Absa, citing ongoing challenges such as external trade constraints, supply-side uncertainties, and volatile costs. Additionally, signs of caution are evident as the sub-index measuring expected business conditions over the next six months fell by more than 3 points to 46.1. In parallel, the South African government is diligently working to persuade U.S. President Donald Trump to reconsider the 30% tariff imposed on South African exports to the U.S. since August, though no progress has been reported yet.