South Africa Manufacturing Output Declines Significantly in January 2025

South Africa’s manufacturing production fell by 3.3% year-over-year in January 2025, the sharpest drop since June 2024. Key sectors showing declines include petroleum, food, and motor vehicles. A slight monthly increase of 0.2% in industrial output fell short of a 0.9% market expectation.

In January 2025, South Africa experienced a significant drop in manufacturing production, which fell by 3.3% year-over-year, worsening from a decrease of 1.2% in December. This decline marks the third consecutive month of contraction and represents the sharpest decrease since June 2024. Key sectors contributing to this downturn include petroleum, chemical products, rubber, and plastic, which saw a decline of 9.1%, as well as food and beverages, down 3.2%, and motor vehicles and transport equipment, which plunged by 10.1%.

Despite a slight recovery in seasonally adjusted industrial output, which increased by 0.2% in January—following a revised 2.2% decline in December—this growth did not meet market expectations, which had anticipated a 0.9% increase. As such, the manufacturing sector continues to show vulnerability amidst economic challenges.

In conclusion, South Africa’s manufacturing sector is currently facing significant challenges, with a yearly decline of 3.3% in January 2025. This marks the steepening contraction over three months, particularly influenced by reductions in major industries such as petroleum, food, and automotive. The modest recovery in industrial output did not satisfy market expectations, highlighting ongoing economic difficulties.

Original Source: www.tradingview.com