South Africa’s Manufacturing Production Declines by 3.3% in January 2025

South Africa’s manufacturing production fell by 3.3% in January 2025, the steepest decline since June 2024. Key sectors, including petroleum, food, and motor vehicles, drove this downturn. Despite a marginal month-over-month increase of 0.2% in industrial output, this was below market expectations.

In January 2025, South Africa’s manufacturing production experienced a significant decline of 3.3% year-over-year, a worsening from the 1.2% decrease recorded in December. This downturn reflects the third consecutive month of contraction and represents the most substantial drop since June 2024, attributed primarily to reduced output in critical sectors.

Key areas contributing to this decline include petroleum, chemical products, rubber, and plastic, which fell by 9.1%, food and beverages, which decreased by 3.2%, and motor vehicles, parts, and accessories, which saw a notable decline of 10.1%.

Despite this overall decline, industrial output on a seasonally adjusted monthly basis increased slightly by 0.2% in January, indicating a minor recovery from December’s revised drop of 2.2%. However, this recovery was below market expectations, which had projected a 0.9% rise in output.

In summary, South Africa’s manufacturing sector continues to struggle, facing a significant contraction of 3.3% in January 2025 and reflecting ongoing weaknesses in various industries. While there was a slight month-on-month increase in industrial output, it failed to meet market forecasts, indicating persistent challenges within the economic landscape.

Original Source: www.tradingview.com