South African rand weakens as investors assess manufacturing survey, vehicle sales

JOHANNESBURG, Oct 1 (Reuters) - The South African rand weakened against a stronger dollar on Thursday, as investors digested domestic economic data showing an improvement in manufacturing sentiment and resilient vehicle sales.

• At 1355 GMT, the rand traded at 16.5750 against the dollar , down about 0.8% from its previous close.

• The US dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.2%.

• South African manufacturing sentiment improved in September after three months of contraction, helped by a rebound in new orders, a purchasing managers' index (PMI) survey showed on Thursday.

• "The September PMI marks a welcome improvement after a weak winter period, particularly given the sharp rebound in new orders," South African bank Absa, which sponsors the PMI, said.

• Separately, data from South Africa's automotive industry body NAAMSA showed new vehicle sales increased 12.7% year-on-year in September, accelerating from 11.4% growth in August.

• "South Africa's domestic new vehicle market has continued to demonstrate notable resilience, defying expectations amid higher borrowing costs, persistent inflationary pressures, and subdued economic growth," NAAMSA said.

• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was down 0.3%.

• South Africa's benchmark 2035 government bond also weakened, with the yield rising 2.5 basis points to 8.845%.