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Economy

Concern as SA’s manufacturing sector falls for fourth consecutive month

Date: Apr 11, 2025

Activity in South Africa’s (SA) manufacturing sector fell in February, extending the contraction to four consecutive months.

The country’s national statistics agency, Statistics SA, released data which shows that manufacturing production declined by 3,2% in February 2025, compared to 3.3% at the same time last year.

Activity in South Africa’s (SA) manufacturing sector fell in February, extending the contraction to four consecutive months. The country’s national statistics agency, Statistics SA, released data which shows that manufacturing production declined by 3,2% in February 2025, compared to 3.3% at the same time last year.

The agency says some of the largest negative contributions were made by motor vehicles, parts and accessories and other transport equipment as well as petroleum, chemical products, rubber and plastic products.

The figures also revealed that seasonally adjusted manufacturing production increased by 0,3% in the three months ending February 2025, compared with the previous three months, while month-on-month improvement was marginal.

Senior Economist at the country’s First National Bank, Thanda Sithole says the automotive sector recorded the largest decline in February due to slowdown in production, a sharp contrast to the 2.4% increase seen in grain mill products, 1.6% in beverages and 0.6% in other food products.

“Manufacturing output remained under pressure in February, declining by 3,2% year-on-year, the same as January’s contraction and western markets expectations”, Sithole said.

Economists say the outlook on this sector remains muted as they expect manufacturing output to grow by no more than 1% this year. The expectation is influenced by domestic demand, which remains weak despite the marginal easing of energy constraints.

Stats SA Director of Industry, Nicolai Claassen says the automotive division, petroleum chemicals, rubber and plastics were some of the largest negative contributors.

“The automotive division declined by 14.9% and subtracted 1.3% points from the overall growth. A slowdown in the production of motor vehicle, sports, accessories and trailers underpins the division’s poor performance”, Claassen said.

---SABC--