JOHANNESBURG- South African manufacturing activity expanded further in February, as better demand supported new sales orders and output volumes, a survey showed on Tuesday.

The seasonally-adjusted Absa Purchasing Managers' Index (PMI) rose to 58.6 points in February from 57.1 points in January, remaining above the 50-point mark that separates expansion from contraction.

"Respondents noted the quickest increase in new sales orders since the second quarter of 2021. This was likely, to a large extent, driven by an improvement in exports," Absa said in a statement accompanying the survey's findings.

"Better demand supported a further rise in production volumes, with the output index ticking up to a healthy 59.6 points in February."

Absa added that the employment index edging back up above 50 points in February, to reach 50.7 points from 49.2 points in January, suggesting that employment levels in the sector might be stabilising. (Reporting by Olivia Kumwenda-Mtambo)