Manufacturing production in South Africa fell by 3.3% year-over-year in January 2025, continuing a trend of contraction. Key sectors, including motor vehicles and petroleum, drove the decline. Although industrial output increased by 0.2% month-over-month, it was below market expectations of 0.9%.
In January 2025, manufacturing output in South Africa fell by 3.3% year-over-year, an increase from the 1.2% decline observed in December. This marks the third consecutive month of contraction, the steepest since June 2024. The decrease is largely attributed to reduced production in significant sectors such as petroleum, chemical products, rubber, and plastics, which saw a decline of 9.1%, food and beverages at 3.2%, and motor vehicles and parts at 10.1%.
Despite a slight recovery on a seasonally adjusted monthly basis, where industrial output rose by 0.2% in January from a revised 2.2% fall in December, this did not meet market expectations, which anticipated a 0.9% increase. The ongoing decline in manufacturing output highlights persistent challenges in the South African economy, particularly in vital sectors contributing to overall growth.
In summary, South Africa’s manufacturing sector is facing considerable challenges, evidenced by a 3.3% decline in output in January, marking its steepest drop since mid-2024. Key sectors such as petroleum and motor vehicles experienced significant contractions, which overshadow any monthly recovery in industrial output that fell short of expectations. The situation indicates a need for targeted interventions to bolster the manufacturing industry.
Original Source: www.tradingview.com
