An automotive engineer welds components used in the automotive industry at Nelson Mandela University in Gqeberha, as the annual South African vehicle component manufacturers conference takes place, with a particular focus on how the industry is adapting to U.S. tariffs, in Gqeberha, Eastern Cape province, South Africa, August 12, 2025. REUTERS/Shafiek Tassiem

JOHANNESBURG (Reuters) -South African manufacturing sentiment improved in September, driven by strong domestic demand, a purchasing managers' index (PMI) survey showed on Wednesday.

The seasonally-adjusted PMI sponsored by South African bank Absa rose to 52.2 points in September from 49.5 in August.

It was only the second time this year that the PMI has been above 50 points, reflecting an expansion in activity.

"The domestic market drove the recovery as global demand remained under pressure and is complicated by steep US tariffs, a challenging trading environment, and lingering SA port issues," Absa said in a statement accompanying the survey's results.

U.S. President Donald Trump imposed a 30% tariff on South African exports to the U.S. in August, the highest rate in Sub-Saharan Africa, a move that could cause tens of thousands of job losses in sectors like agriculture and carmaking.

The business activity and new sales orders sub-indices rose strongly, reflecting the rebound in local demand.

But another sub-index pointed to slower deliveries, as respondents cited logistical hurdles like export paperwork delays, and one tracking expected business conditions in six months' time dropped sharply.

Absa said there was growing uncertainty about the near-term outlook given global headwinds.

($1 = 17.2475 rand)

(Reporting by Anathi Madubela;Editing by Alexander Winning)