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

Manufacturing production in South Africa fell by 3.5% year-on-year in September 2026, following a revised 4.1% decline in August and coming in worse than market expectations for a 2% drop. The downturn in output was led by significant weakness in motor vehicles, parts and accessories, and other transport equipment (-15.0%), as well as in wood and wood products, paper, publishing and printing (-11.2%). This was further aggravated by a sharp 19.0% contraction in furniture and other manufacturing. In addition, basic iron and steel, non-ferrous metal products, metal products and machinery recorded a 3.7% decline.

On a seasonally adjusted month-on-month basis, manufacturing production was unchanged in September, after a revised 3.0% slump in August. However, seasonally adjusted manufacturing output still managed to rise by 0.9% in the third quarter of 2026 compared with the second quarter.