Business sentiment in South Africa’s manufacturing sector improved for a second consecutive month in October, albeit marginally, weighed down by weak domestic demand and logistical constraints, according to a Purchasing Managers’ Index survey released on Monday, 2 November.

The seasonally adjusted PMI, sponsored by South African bank Absa, rose to 49.6 points in October from a revised 48.7 points in September. The index uses the 50-point mark as the threshold separating expansion from contraction in activity.

All five components of the index recorded improvements over the month, though Absa cautioned that the recovery remains fragile.

The business activity index edged up to 48.6 points, while the new orders sub-index rose to 46.8 points.

“Both indices remain below the neutral 50-point mark, indicating that production and demand conditions continue to face pressure,” the bank said in a statement.

Meanwhile, the index tracking expectations for business conditions over the next six months fell to 51.7 points in October from 55.3 points in September. Absa attributed the decline to logistical constraints and political uncertainty ahead of the 4 November municipal elections.

The bank said a sustained recovery in demand and output, combined with an easing of cost pressures, would be decisive in enabling the sector to return consistently to growth.