Power Cuts Drive South African Factory Activity to 14-Month Low
- Purchasing managers’ index fell to 48.2 in September from 52.1
- Index tracking expected business conditions suggests more pain
Employees work at a sewing machine, powered by a generator, during a load-shedding power outage period at a sailmaker in Cape Town, South Africa.
Photographer: Dwayne Senior/BloombergThis article is for subscribers only.
Business activity in South Africa’s manufacturing industry fell to a 14-month low in September as electricity-supply constraints in the continent’s most industrialized economy disrupted operations.
A gauge tracking business activity declined to 38.5 from 50.6 in August, Absa Group Ltd. said on Monday. That’s the lowest monthly reading since July 2021, when deadly riots, looting and arson disrupted supply chains, industrial output and demand for manufactured goods. An outcome below 50 signals contraction.