South Africa’s Manufacturing Output Declines Sharply in January 2025

In January 2025, South Africa’s manufacturing output declined by 3.3% year-over-year. This marks the steepest decline since June 2024. Key sectors such as petroleum and motor vehicles significantly impacted this downturn. Monthly seasonally adjusted output saw a minor recovery of 0.2%, below market expectations.

In January 2025, South Africa experienced a significant decline in manufacturing production, which fell by 3.3% year-over-year, a worsening from the previous month’s 1.2% decrease. This contraction marks the third consecutive month of decline and represents the largest drop since June 2024. Contributing factors include weaker outputs in critical sectors such as petroleum, chemical products, rubber, and plastic, which fell by 9.1%, food and beverages at 3.2%, and motor vehicles, parts, accessories, and other transport equipment, which saw a considerable decline of 10.1%.

Despite these challenges, on a seasonally adjusted monthly basis, industrial output showed a modest recovery in January, edging up by 0.2%. This slight increase follows a revised 2.2% decline observed in December, although it did not meet market expectations for a 0.9% rise.

In conclusion, South Africa’s manufacturing sector continues to face significant challenges in early 2025, marked by a notable year-over-year decline in production. Key sectors are contributing to this downturn, particularly petroleum, food, and automotive industries. While there was a minor recovery month-on-month, it fell short of anticipations, reflecting ongoing economic difficulties.

Original Source: www.tradingview.com