world-economy

South African Factory Activity Contracts as Buyers Await Lower Prices

Manufacturing sentiment in South Africa deteriorated in June as purchasing managers reported customers postponing orders in anticipation of price declines following the US-Iran agreement to reopen the Strait of Hormuz.

The sentiment gauge slipped back into contractionary territory as procurement delays rippled through supply chains. Airfreight rates have shown signs of easing following the geopolitical agreement, though volatility in energy markets is expected to persist for months ahead.

Buyers adopted wait-and-see postures across sectors, creating headwinds for manufacturers. The pullback in orders signals caution among downstream customers. South African factory managers now face depressed activity as purchasing decisions remain suspended pending further price adjustments.