South African manufacturing activity expanded in August as business output rose while new sales orders declined at a slower pace than before, a survey showed on Thursday.

The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) was at 52.1 points in August from 47.6 points in July, rising above the 50-point mark that separates expansion from contraction.

“The business activity index rose back above the neutral 50 point mark for the first time since March. Since then, output was hampered by the flooding in KwaZulu-Natal and significant electricity supply disruptions,” Absa said in a statement.

“Domestic demand is likely continuing to benefit from the reopening effect, while some respondents also mentioned the return of production at Toyota’s flood-affected factory as supporting demand across the value chain.”