FX.co ★ South Africa Factory Output Falls More than Expected

Manufacturing activity in South Africa contracted by 4.3% year-on-year in May 2026, deepening from a 2.9% decline in April and exceeding market expectations of a 3.2% drop. The figures confirm that the sector remained in recessionary territory for a second consecutive month, with output falling at the fastest rate since April 2025.

The largest negative contribution came from food and beverages, where production fell 6.4%, shaving 1.6 percentage points off overall growth. Basic iron and steel, non‑ferrous metal products, metal products and machinery also weighed heavily, with output down 5.6% and reducing growth by a further 1.3 percentage points. Production in wood and wood products, paper, publishing and printing slumped by 11.0%, adding additional downward pressure.

On a seasonally adjusted month-on-month basis, however, manufacturing output rose 1.1% in May, partially recovering from a downwardly revised 2.6% decline in April. Over the three months to May 2026, manufacturing production was still 1.0% lower than in the preceding three-month period.