South African manufacturing slumps 2.8% as industrial contraction deepens

Car manufacturing in South Africa

South Africa’s manufacturing production slumped by 2.8% year-on-year in February, according to data released by Statistics South Africa on Thursday, marking a sharp acceleration in the sector’s downturn as it grapples with cooling demand and persistent structural challenges.

The decline significantly exceeded market expectations and followed a revised 0.1% marginal drop in January. The data confirms a fourth consecutive month of contraction for the continent’s most industrialized economy, signaling a difficult first quarter for Gross Domestic Product (GDP) growth.

On a month-on-month basis, seasonally adjusted manufacturing output fell by 2.2% in February compared to January. The wider three-month picture also showed weakness, with total production decreasing by 2.0% in the three months ended February 2026 compared with the previous three months.

The slump was widespread, with seven of the ten manufacturing divisions reporting negative growth. The most significant downward pressure came from the wood and paper, publishing, and printing division, which plummeted 9.7% and shaved 1.1 percentage points off the total growth rate.

The heavy-weight food and beverages division followed with a 4.5% decline, while the motor vehicles, parts and accessories, and other transport equipment sector fell by 3.1%.

Bucking the downward trend, the glass and non-metallic mineral products division grew by 6.4%, and electrical machinery production rose by 5.7%. However, these gains were insufficient to bridge the gap left by the contraction in the sector’s larger components.

The manufacturing sector, which accounts for roughly 12% of South Africa’s GDP, remains a critical barometer for the health of the broader economy. Today’s figures suggest that industrial recovery remains elusive as the country nears the end of the first quarter.

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