The seasonally adjusted Kagiso PMI rose by 1.8 index points to reach 51.7 in February, up from Jnauary's level of 49.4
An index level below 50 suggests a contraction in activity while that above 50 points indicates expansion.
The new sales orders index‚ the sub-component with the heaviest weighting‚ rose by 3.2 index points to 53.4 - the best level since August last year.
Of concern‚ however‚ was the fact that the business activity index remained below the neutral 50-point mark for a third consecutive month‚ the data showed.
The data showed that the business activity index nudged up by just 0.4 index points to reach 48.4‚ suggesting that production levels remained subdued‚ despite the apparent improvement in demand.
The employment index declined from 50.7 to 48.2 index points in February.
The input cost pressure accelerated significantly in the review period‚ with the price index rising to the highest level ever recorded since the start of the PMI in 1999.
The index rose by 5.8 index points to 95.1‚ driven mainly by a weaker rand‚ which pushed up the costs of imported goods.
"Manufacturers are less optimistic about expected business conditions in six months' time. This index fell from a high 61.4 index points to 55.7 in February, However, it remained in positive territory‚" the data showed.
The PMI's leading indicator also dipped below one due to a sharp rise in the inventories index - a level below one generally does not bode well for future production.
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