South Africa Factory Sector Shrinks for 3rd Month

Manufacturing activity in South Africa decreased by 0.7% year-on-year in January 2026, after an upwardly revised 1.5% fall in December, marking the third consecutive month of declines. The main negative contributors were the wood and wood products, paper, publishing, and printing division (-11.0%, -1.3 percentage points) and the basic iron and steel, non-ferrous metal products, metal products, and machinery division (-5.7%, -1.2 pp). On a seasonally adjusted monthly basis, output rose by 1.5%, after an upwardly revised 1.3% decline in the previous month.

Manufacturing activity in South Africa fell by 1.4% year-on-year in December 2025, marking a two-month downturn following an upwardly revised 2% decline in November. Food and beverages (-4.6%, -1.4 percentage points), wood and wood products, paper, publishing, and printing (-5.2%, -0.6 points), and basic iron and steel, non-ferrous metal products, metal products, and machinery (-2.3%, -0.4 points) were the largest contributors to the decline. On a seasonally adjusted monthly basis, output decreased by 1.2%, after an upwardly revised 2.1% slump in the previous month. In 2025, total manufacturing production shrank by 1.3% compared with 2024.

Manufacturing output in South Africa fell by 1% year-on-year in November 2025, following an upwardly revised 0.4% rise in October and against analysts' forecast of a 0.2% increase. This marked the first decline in factory activity since August, led by wood and wood products, paper, publishing and printing (-7.9%); basic iron and steel, non-ferrous metal products, metal products and machinery (-2.5%) and motor vehicles, parts and accessories and other transport equipment (-4.4%). On a seasonally adjusted monthly basis, output shrank by 1.1% in November, after a 1% rise in the previous month. Seasonally adjusted manufacturing production increased by 0.6% in the three months ended November 2025 compared with the previous three months.