South African manufacturing activity hit a record peak in June as a weaker rand currency helped local firms grab a bigger share of the domestic market and boost their exports, a survey showed yesterday.

South Africa’s purchasing managers index soared to 63.2 during the month, up from 59.8 in June, with the main driver a significant recovery in output, sponsors Investec said.

“Business in the sector seems to be booming,” said Andre Roux, head of fixed income at Investec Asset Management.

“The weaker exchange rate is allowing local manufacturers to capture a larger share of domestic sales orders against importers, while exports are also improving,” he said in a statement yesterday.

South Africa’s rand currency has depreciated by about 10 percent against the dollar in the year to date, and also lost ground against the pound and the euro. It hit a 2-1/2 year low of 7.52/dollar in June.

But several years of sustained strength in the currency following its recovery from a record low of 13.85/dollar have taken a toll on exports from the manufacturing sector, which accounts for more than 16 percent of Africa’s biggest economy.

Economists said they were surprised by the extent of the increase, as South African lending rates rose in June for the first time in nearly four years.

“It’s quite surprising that it’s higher, it can only be because of the weaker rand, which has given manufacturing a much-needed boost,” said Brait economist Colen Garrow.

Manufacturing contracted by 0.3 percent in the fourth quarter of 2005, but rebounded with an increase of 4.3 percent in the first quarter of this year, according to official data.