South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell further to 45.8 in August 2026 from 46.8 in July, marking the third consecutive month of contraction in factory activity and the steepest since last December. Business activity plunged to 40.2, its lowest level this year, while new orders fell to 40.3, erasing July’s gains. The deterioration was largely domestic, with manufacturers citing weak demand, fragile consumer confidence and softer spending on non-essential goods, although export sales improved somewhat. The labour market remained under pressure, but the pace of factory job losses slowed. Meanwhile, six-month business expectations climbed to 54.7 from 49.3, moving back above the neutral 50 level and signalling greater optimism that the current weakness may be temporary. Absa nevertheless warned that weak orders and production leave near-term conditions challenging.