In January 2025, South Africa's manufacturing sector continued its slide, with the Purchasing Managers' Index (PMI) registering at 45.3, a drop from 46.2 in December 2024. The latest data, updated on February 3, 2025, reveals a further decline in the sector's performance, indicating deepening contraction as it remains below the crucial 50-point mark that separates expansion from contraction.
The continued decrease in the PMI underscores persistent struggles within South Africa's manufacturing landscape, pressured by multiple factors. Analysts had noted that economic headwinds, including fluctuating demand and supply chain disruptions, weighed heavily on the sector's output and logistics through the first month of the new year.
As South Africa grapples with these challenges, the sharp decline highlights the urgency for policy intervention and strategic measures to revitalize manufacturing activities. Stakeholders are keenly observing to gauge future trends and necessary actions to bolster economic resilience in the coming months.
