FX.co ★ South Africa’s Manufacturing PMI Rebounds Sharply in January, Signalling Easing Contraction

South Africa’s manufacturing sector showed a strong improvement at the start of 2026, with the Manufacturing PMI rising to 48.7 in January from 40.5 in December 2025. The latest reading, updated on 2 February 2026, indicates that although activity remains below the 50-point threshold that separates expansion from contraction, the depth of the downturn has eased markedly.

The sharp month-on-month jump suggests that conditions in the factory sector are stabilising after a weak end to 2025. While the PMI is still in contractionary territory, the move closer to 50 may be interpreted by market participants as a tentative sign of improving sentiment and a potential turning point for South Africa’s manufacturing industry if the trend continues in the coming months.