Bad news for one of South Africa’s biggest employers

South Africa’s manufacturing sentiment deteriorated in October, dragged down by subdued domestic demand and sluggish exports, a purchasing managers’ index (PMI) survey showed on Monday.

The seasonally-adjusted PMI sponsored by South African bank Absa fell to 49.2 points in October from 50.8 in September, highlighting “the fragility of the manufacturing recovery,” Absa said in a statement.

A reading below 50 indicates decreased activity.

The business activity sub-index dropped by 5 points to 49.4, marking the ninth month this year it has been in contractionary territory.

Another sub-index tracking expected business conditions in six months dropped more than 3 points to 46.1.

“Business confidence remains low as the sector continues to navigate external trade constraints, supply-side uncertainty, and cost volatility,” Absa said.

South Africa’s government is trying to convince U.S. President Donald Trump to lower the 30% tariff he imposed on South African exports to the United States in August, but so far there has been no breakthrough.