South Africa’s manufacturing sector showed signs of stabilisation in June 2026, with output contracting 1.7% year-on-year, an improvement from the sharper 4.3% decline recorded in May 2026. The latest figures, updated on 11 August 2026, indicate that while the sector remains in negative territory, the pace of the downturn has slowed.
The data are based on a year-over-year comparison, measuring the change in manufacturing production in June 2026 versus June 2025, and in May 2026 versus May 2025. The easing in the annual rate of decline suggests that some of the pressures that drove the steeper drop in May have moderated, though the industry has yet to return to growth.
For investors and policymakers, the softer contraction may hint at tentative stabilization rather than a clear rebound. Further monthly data will be needed to determine whether June’s improvement marks the beginning of a sustained recovery in South African manufacturing or merely a temporary pause in a broader slowdown.
