A gauge of South African manufacturing sentiment showed signs of improvement in June, reaching its second-highest level this year though output is still weak and logistics bottlenecks remain, a survey showed on Tuesday.

The seasonally-adjusted purchasing managers' index (PMI) sponsored by South African bank Absa rose to 48.5 points in June from 43.1 in May.

The PMI has now been below 50 for eight consecutive months, reflecting depressed factory activity in Africa's most industrialised economy.

"The June PMI results suggest that South Africa's manufacturing sector may be turning a corner, with firmer demand and easing cost pressures laying the groundwork for recovery. However, output remains weak and structural logistical challenges persist," Absa said in a statement.

The new sales order sub-index contributed to the increase in the headline PMI, rising by 7.8 points to 46.1 in June.

However the improvement in demand failed to boost production as the business activity sub-index decreased by 1.6 points to 41.9 last month.

South Africa's economy stagnated in the first quarter of 2025, partly due to a weak performance by its manufacturing sector.