In a concerning development for South Africa's manufacturing sector, the country's Purchasing Managers' Index (PMI) recorded a further decline in December 2025. The PMI, a key economic indicator reflecting the health of the manufacturing sector, dipped from 42.0 in November to 40.5 in December. This slide emphasizes ongoing challenges within the sector as it continues to contract.
The data update, revealed on January 8, 2026, highlights a continuation of the downward trend from November's already low figure. A PMI reading below 50 typically indicates a contraction in the sector, signaling reduced activity. December's figure of 40.5 points to more pronounced challenges, potentially linked to a variety of factors, such as supply chain disruptions or decreased demand.
The persistent decline in the Manufacturing PMI underscores the need for focused policies to revitalize South Africa's manufacturing base. The country must address underlying issues to prevent further erosion of confidence and performance in this critical sector of its economy. Stakeholders are now looking to whether the current governmental and industrial measures will stem this contraction in the coming months.