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2025.09.0109:00:00UTC+00South Africa's Manufacturing PMI Slips Below the Neutral Mark in August

South Africa's Purchasing Managers' Index (PMI) for the manufacturing sector has experienced a downward shift, slipping below the neutral level in August 2025. The latest figures updated on September 1, reveal that the index now stands at 49.5, down from 50.8 in July.

The decline marks a movement away from the growth zone, with 50.0 being the critical threshold that separates expansion from contraction in manufacturing activity. A PMI below 50 typically signals a contraction in the manufacturing industry, highlighting potential challenges for the sector moving forward.

The manufacturing PMI is a crucial economic indicator as it reflects the health of the manufacturing sector, a vital engine of economic growth. This recent drop raises questions about the broader economic implications for South Africa and suggests potential hurdles in industrial productivity and output. Traders, investors, and policymakers alike will be monitoring the situation closely, given its possible impact on future economic policies and market dynamics.

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