South Africa’s Manufacturing Production Declines 3.3% Year-Over-Year in January 2025

South Africa’s manufacturing sector saw a 3.3% year-over-year decline in production for January 2025, worsening from a 1.2% drop in December. Key sectors such as petroleum and motor vehicles suffered substantial decreases. Despite a slight monthly recovery, the overall trend indicates ongoing challenges in the industrial landscape.

In January 2025, South Africa’s manufacturing production experienced a significant decline of 3.3% year-over-year, a fall that deepens from the previous month’s decrease of 1.2%. This contraction marks the third consecutive month of decline and represents the steepest drop since June 2024. The downturn was predominantly influenced by weaker output in several critical sectors, including petroleum, chemical products, rubber, and plastic at -9.1%; food and beverages at -3.2%; and motor vehicles, parts, accessories, and other transport equipment at -10.1%.

Although industrial output on a seasonally adjusted monthly basis rose by 0.2% in January, this slight recovery followed a revised decline of 2.2% in December. However, this increase did not meet market expectations, which anticipated a rise of 0.9%. Overall, the ongoing decline in manufacturing indicates persistent challenges facing South Africa’s industrial sector.

In conclusion, South Africa’s manufacturing sector is currently facing significant challenges, as highlighted by a 3.3% year-over-year decline in January 2025. The contraction has been driven by notable decreases in key industries, despite a minor recovery in monthly output. The inability to meet market expectations further underscores the complexity of the current economic landscape.

Original Source: www.tradingview.com