South Africa Faces Significant Decline in Manufacturing Output

South Africa’s manufacturing output declined by 3.3% year-over-year in January 2025, marking the third consecutive monthly contraction. Key sectors such as petroleum and motor vehicles experienced significant drops. However, industrial output slightly rose by 0.2% on a seasonally adjusted basis, failing to meet expectations.

In January 2025, South Africa’s manufacturing production experienced a notable decline of 3.3% year-over-year, an increase from a 1.2% decrease reported in December. This downturn signifies the third consecutive monthly contraction, representing the steepest decline since June 2024. This decrease was primarily attributed to weaker performance in significant sectors such as petroleum, chemical products, rubber, and plastic, which fell by 9.1%; food and beverages dropped by 3.2%; and motor vehicles, parts, accessories, and other transport equipment saw a decline of 10.1%. On a seasonally adjusted monthly basis, industrial output slightly increased by 0.2% in January, showing some recovery from a revised 2.2% decline in December. However, this recovery did not meet market expectations, which had forecasted a 0.9% increase.

The continuous decline in South Africa’s manufacturing output underscores significant challenges faced within critical sectors of the economy. With a 3.3% year-over-year decrease, it highlights the need for measures to bolster industrial production. Although there was a marginal improvement in industrial output on a monthly basis, it was insufficient to overcome the prevailing downturn, indicating a concerning trend for the manufacturing sector moving forward.

Original Source: www.tradingview.com