South Africa’s manufacturing sector moved back into expansionary territory at the start of 2026, as the S&P Global Manufacturing PMI rose to 50.0 in January 2026 from 47.7 in December 2025. The data, updated on 4 February 2026, signal a stabilisation in factory activity after a period of contraction.
The jump from 47.7 to the neutral 50.0 mark indicates that overall operating conditions in the manufacturing sector have stopped deteriorating, suggesting a tentative turnaround in output, new orders, or both. While 50.0 is only the threshold between contraction and expansion, the shift is notable against the backdrop of previous weakness in the sector.
Investors and policymakers will now watch upcoming releases to see whether January’s reading marks the start of a sustained recovery in South African manufacturing, or a temporary pause in a more prolonged slowdown.
