FX.co ★ South Africa’s Manufacturing PMI Slips Further into Contraction in August

South Africa’s manufacturing sector weakened in August 2026, with the Purchasing Managers’ Index (PMI) falling to 45.8 from 46.8 in July, according to data updated on 1 September 2026. The latest reading moves the index deeper below the 50-point threshold that separates expansion from contraction, signaling a further deterioration in manufacturing activity.

The decline from July’s 46.8 suggests that business conditions in the sector worsened, potentially reflecting softer demand, production pressures, or ongoing cost challenges. While the drop of one point may appear modest, the sustained sub-50 readings over consecutive months point to a prolonged period of strain for South African manufacturers as they navigate a difficult operating environment.