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

In January 2025, South Africa’s manufacturing output dropped by 3.3% year-over-year, the steepest decline since June 2024, driven by reductions in major sectors such as petroleum and motor vehicles. Monthly adjustments indicated a slight recovery of 0.2%, yet it was below anticipated figures.

In January 2025, South Africa’s manufacturing sector experienced a notable decline, with production falling by 3.3% compared to January 2024. This decrease is an escalation from the 1.2% drop observed in December 2024, indicating a disturbing trend as it marks the third consecutive month of contraction and the most significant decline since June 2024.

The downturn in manufacturing output was largely attributed to declines in pivotal industries. Key areas noted were petroleum, chemical products, rubber, and plastic, which experienced a substantial output decrease of 9.1%. Additionally, the food and beverages sector saw a 3.2% decline, while the motor vehicles, parts, accessories, and other transport equipment category recorded a sharp decrease of 10.1%.

On a seasonally adjusted monthly basis, industrial output did show a modest recovery, rising by 0.2% in January. This improvement follows a revised decline of 2.2% in December 2024; however, it did not meet market expectations of a 0.9% increase, highlighting ongoing challenges in the manufacturing sector.

In summary, South Africa’s manufacturing industry faces significant challenges, evidenced by a 3.3% year-over-year decline in January 2025. Key sectors such as petroleum, food, and motor vehicles contributed to this downturn. Despite a slight recovery in industrial output on a monthly basis, the performance fell short of market expectations, underlining a pressing need for strategic interventions to revitalize the sector.

Original Source: www.tradingview.com