South Africa's purchasing managers' index (PMI) rose to a four-month high in June, it has been revealed.
The seasonally adjusted index increased to 51.6 from 50.4 in May, Johannesburg-based Kagiso Tiso Holdings said.
A number above 50 indicates growth in factory output.
"While the latest PMI results show that conditions improved marginally, the outlook for the sector is expected to remain challenging in an environment of muted demand and relatively high input prices," said Abdul Davids, head of research at Kagiso.
There was a modest improvement across all the major sub-indices, except the employment sub-index which continued to decline.
The business activity index reached 52.2 points and the new sales orders index increased by 2.9 points to 54.
The Bureau for Economic Research based at the University of Stellenbosch near Cape Town conducts the PMI survey for Kagiso.
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