South African manufacturing sentiment plunges in November

JOHANNESBURG, Dec 1 (Reuters) - A monthly gauge of South African manufacturing sentiment saw its sharpest drop of the year in November, a purchasing managers' index (PMI) survey showed on Monday.

The seasonally-adjusted PMI sponsored by South African bank Absa fell to 42.0 in November from 49.2 in October.

A reading below 50 indicates decreased activity.

Absa said in a statement that the survey results underscored the fragility of South Africa's manufacturing sector, with demand and production declines overshadowing modest employment gains and easing cost pressures.

Export sales in the continent's most industrialised economy have been sluggish since late 2024, and domestic demand has faltered after a brief recovery in the third quarter.

On a positive note a sub-index tracking expected business conditions in six months' time edged up to 50.8, indicating cautious optimism for a future recovery, though it remained below the long-term average.