South Africa's manufacturing sector is facing significant headwinds as the latest Purchasing Managers' Index (PMI) for November dropped sharply to 42.0, down from 49.2 in October. This marked downturn, reported on December 1st, 2025, signals a worrying contraction in the manufacturing industry, slipping further below the 50.0 threshold that separates growth from contraction.
The current reading is indicative of shrinking output and declining new orders, which is concerning for the overall economic health of South Africa. As manufacturing is a key component of the national economy, this steep decline could have ripple effects, impacting employment rates and economic growth projections.
The reasons behind this downturn are yet to be fully understood, but global supply chain disruptions and local economic challenges could be contributing factors. The current PMI figure suggests that manufacturers are facing significant difficulties, with implications that are likely to require urgent attention from policymakers to avert long-term economic impacts.
