JOHANNESBURG, Feb 2 (Reuters) - A gauge of South African manufacturing sentiment improved ‍in January ‍thanks to a pickup in business activity, ​though weak exports dragged down the headline index, a ⁠purchasing managers' index (PMI) survey showed on Monday.

The seasonally-adjusted PMI ⁠sponsored by South ‌African bank Absa rose to 48.7 points in January from 40.5 in ⁠December, moving closer to the 50-point mark that reflects an overall improvement in business conditions for manufacturers.

"The magnitude of this increase is ⁠significant," Absa said in a ​statement accompanying the survey results.

The fact that the business activity ‍sub-index rose above 50 "bodes well for manufacturing production ​after a more subdued fourth quarter," the statement added.

But exports slumped to their lowest level since the height of the COVID-19 pandemic, suggesting that a recovery in new orders was solely driven by domestic demand, it continued.

An index tracking expected business conditions in six months' time eased slightly, though ⁠it remained nearly 10 ‌points above the 2025 average.

South Africa's manufacturing output was volatile last year, as U.S. President Donald ‌Trump's ⁠tariff policies made the global economic backdrop highly uncertain.