South Africa Factory Activity Stages Surprise Recovery

Manufacturing activity in South Africa rose by 1.1% year-on-year in July 2026, reversing the upwardly revised 1.7% drop in June and better than the expected 1.6% decline. The rebound followed three consecutive months of declining activity. The largest positive contributions came from the food and beverages division, which grew by 4.1%, and the petroleum, chemical products, rubber and plastic products division, which increased by 3.2%. On a seasonally adjusted monthly basis, manufacturing production grew by 2.2%, the most since May 2025, after a downwardly revised 0.8% increase in the month. South Africa manufacturing production increased by 1.0% in the three months ended July 2026 compared with the previous three months.

South Africa’s manufacturing production fell 1.7% year-on-year in June 2026, easing from a downwardly revised 4.4% decline in May and remaining in contraction for a third consecutive month. The decline in food and beverages (-3.9% vs -5.8%) and wood, wood products, paper, publishing and printing (-8.9% vs -12.9%) softened. Meanwhile, output rebounded for glass and non-metallic products (1.2% vs -8.3%), basic iron and steel, non-ferrous metal products, metal products and machinery (0.1% vs -5.8%), and radio, television and communication equipment and professional equipment (3.3% vs -4.5%). Growth in petroleum, chemical products, rubber and plastics slowed to 1.2% from 2.3%. On a seasonally adjusted monthly basis, manufacturing output rose 0.9%, following a revised 1% increase in May. In Q2, manufacturing output shrank 1.7% compared to a year earlier.

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.