South Africa’s manufacturing sector remained in contraction at the start of 2026, but the pace of decline moderated. Year-over-year manufacturing production fell by 0.7% in January 2026, following a deeper 1.4% drop recorded in December 2025, according to data updated on 12 March 2026.
The figures are calculated on a year-over-year basis, comparing each month’s output with the same month a year earlier. January’s reading shows that while the sector is still under pressure, the downturn is less severe than in the prior month, suggesting a tentative stabilization in industrial activity.
The improvement from December to January may offer some cautious relief to policymakers and businesses, though sustained negative readings underline ongoing challenges for South Africa’s manufacturing base as it moves further into 2026.
