FX.co ★ South Africa Manufacturing Downturn Eases

In March 2025, South Africa's manufacturing production experienced a year-on-year decline of 0.8%, following a more significant decline of 3.2% in February. This decrease marked the fifth consecutive month of reduced industrial activity, yet it was the least severe decrease within this period. While output continued to decline across several sectors, the rate of decline slowed in some areas: electrical machinery saw a reduction of 12.2%, compared to a previous 9% decrease; petroleum, chemical products, rubber, and plastic products had a decline of 2.5%, improving from the prior 5.4% drop; wood, wood products, paper, publishing, and printing fell by 2.1%, better than the previous 3.2% decline; and the food and beverages sector decreased by 0.4%, compared to a 0.2% decrease previously. Conversely, there was a rebound in production for motor vehicles, parts, accessories, and other transport equipment, which improved to 0.5% from a previous 14.5% decline, and the textiles, clothing, leather, and footwear sector, which increased by 1.8%, reversing an earlier 1.4% drop. Furthermore, on a seasonally adjusted monthly basis, manufacturing output contracted by 2.2% in March, following an upwardly revised increase of 0.7% in the previous month. Overall, industrial output fell by 2.3% in the first quarter of 2025 compared to the fourth quarter of 2024.