Johannesburg - South Africa's seasonally adjusted Purchasing Managers' Index (PMI) was at 53.6 in February, rising above the key 50 mark that distinguishes contraction from expansion for the first time since August, a survey showed on Friday.
The index, a key measure of manufacturing activity, increased by 4.5 points in February, from 49.1 in January, driven by improvements in new sales orders and business activity, survey sponsor Kagiso Tiso Holdings said.
"The significant improvement in new sales orders may reflect a turnaround in demand for locally manufactured goods," said Abdul Davids, head of research at Kagiso Asset Management.
"Tentative indications of an improvement in the EU and US economies at the start of this year may have contributed to the increased demand for manufactured goods and a sustained recovery in demand will require improved GDP growth in these regions."