South Africa Factory Activity Shrinks the Most in a Year

Manufacturing activity in South Africa slipped by 4.3% year-on-year in May 2026, following a 2.9% drop in April and worse than the expected 3.2% decline.The latest data showed the sector remained in contraction for a second consecutive month, with output falling at the fastest pace since April 2025. Among the main contributors to the decline were food and beverages, down 6.4% and subtracting 1.6 percentage points, as well as basic iron and steel, non-ferrous metal products, metal products and machinery, which dropped 5.6% and reduced growth by 1.3 percentage points. Output in wood and wood products, paper, publishing and printing plunged 11.0%, adding further pressure. On a seasonally adjusted monthly basis, output rose by 1.1%, after a downwardly revised 2.6% slump in the prior month. Manufacturing production shrank by 1% in the three months ended May 2026 compared with the previous three months.

Manufacturing activity in South Africa dropped by 2.9% year-on-year in April 2026, marking the steepest decline in a year, following an upwardly revised 1.5% increase in the prior month. The downturn was largely driven by basic iron and steel, non-ferrous metal products, metal products and machinery (-6%); wood and wood products, paper, publishing and printing (-10%) and motor vehicles, parts and accessories and other transport equipment (-11%). On a seasonally adjusted monthly basis, output shrank by 2.7%, after an upwardly revised 1.2% rise in the prior month. Manufacturing production fell by 1.3% in the three months ended April 2026 compared with the previous three months.

Manufacturing activity in South Africa increased 0.9% year-on-year in March 2026, following an upwardly revised 2.3% fall in February. This marks the first increase in manufacturing output since November, primarily due to food & beverages (3.5%); petroleum, chemical products, rubber and plastic products (1.8%) and electrical machinery (11.9%). On a seasonally adjusted monthly basis, output rose by 0.8%, after a downwardly revised 1.8% fall in the previous month. Manufacturing production decreased by 1% in Q1 2026 compared with the previous period.