South Africa’s Manufacturing Output Experiences Significant Decline in January 2025
South Africa’s manufacturing output dropped 3.3% year-over-year in January 2025, worsening from 1.2% in December. This marked the steepest decline since June 2024, influenced by poor performance in sectors like petroleum and automotive. While there was a 0.2% monthly recovery, it was below the expected 0.9%.
In January 2025, South Africa experienced a significant decline in manufacturing production, reporting a 3.3% decrease year-over-year. This decline deepened from a 1.2% reduction observed in December, marking the third consecutive monthly contraction. This downturn was the steepest since June 2024 and was primarily impacted by poor performance in crucial sectors including petroleum, chemical products, rubber, and plastic, which fell by 9.1%.
Other sectors also contributed to this downturn, such as food and beverages, which decreased by 3.2%, and motor vehicles along with parts and accessories, which saw a significant drop of 10.1%. On a seasonally adjusted basis, however, industrial output showed a slight recovery, increasing by 0.2% in January after a revised decline of 2.2% in December. This modest uptick, nonetheless, did not meet market expectations, which anticipated a 0.9% increase.
The manufacturing sector in South Africa faced a challenging start to 2025 with a notable 3.3% decline in output year-over-year in January. The decline was largely driven by significant reductions in key industries such as petroleum and automotive. Despite a slight monthly recovery in January, the results fell short of expectations, signaling ongoing concerns for the manufacturing landscape.
Original Source: www.tradingview.com
