South Africa's manufacturing output declined by 4.3% in August 2026, reflecting continued pressure on the country's industrial sector. Illustrative image.

South Africa Manufacturing Output Falls 4.3% in August

JOHANNESBURG, 9 October 2026 — South Africa's manufacturing sector suffered a significant setback in August, with factory production declining by 4.3% compared with the same month last year, according to figures released by Statistics South Africa.

The latest figures, published on Thursday, 8 October, reveal a sharp reversal from July, when manufacturing output had increased by 1.1% year-on-year.

The decline highlights ongoing difficulties for South African manufacturers as businesses face weak demand, higher production costs and uncertain economic conditions.

Factory Production Drops 3.1% in One Month

On a seasonally adjusted basis, manufacturing production fell by 3.1% in August compared with July.

This followed a 2.2% monthly increase in July.

According to Statistics South Africa, the August decline was the sharpest month-on-month contraction since May 2024.

The figures suggest that the improvement recorded in July was not sustained into the following month.

Nine of Ten Manufacturing Divisions Record Declines

The downturn was widespread across the industrial sector.

Stats SA reported that nine of the country's ten manufacturing divisions experienced lower production compared with August 2025.

The petroleum, chemical products, rubber and plastic products division was among the largest contributors to the overall decline.

Production in this division fell by 5%, while motor vehicles, parts and other transport equipment recorded an 8.8% contraction.

Food and beverages manufacturing declined by 3%, as did the division covering basic iron and steel, metal products and machinery.

The textiles, clothing, leather and footwear division was the only major manufacturing category to record annual growth.

Weak Demand and Rising Costs Pressure Factories

Manufacturers continue to face difficult operating conditions, including elevated input costs and subdued demand.

The Absa Purchasing Managers' Index (PMI), a closely watched measure of manufacturing activity, declined to 45.8 points in August.

A reading below 50 generally indicates contraction in the sector.

Analysts have linked the weakness to slower new orders, limited consumer spending and uncertainty about future business conditions.

Higher fuel and energy-related costs have also increased pressure on companies that depend on transport, industrial equipment and imported materials.

What the Decline Means for Jobs and Businesses

Manufacturing plays an important role in South Africa's economy, supporting employment, exports and demand for goods and services from other sectors.

A sustained decline in production could place pressure on company revenues, investment decisions and future hiring.

However, the August production figures alone do not establish how many jobs may have been lost or created during the period.

Smaller suppliers and businesses that depend on industrial customers may also be affected if manufacturers reduce purchases or delay expansion plans.

September Data Offers Some Encouragement

Despite the weak August results, early indicators suggest that conditions may have improved in September.

The Absa manufacturing PMI increased to 50.7 points, returning above the 50-point threshold after three consecutive months below it.

The improvement suggests a possible recovery in business activity and new orders.

Nevertheless, one stronger survey reading does not guarantee that actual manufacturing production has returned to growth.

What Happens Next?

Economists and businesses will be watching upcoming production figures to determine whether August's contraction was temporary or part of a longer period of industrial weakness.

Developments in fuel prices, consumer demand, financing conditions and international markets will remain important influences on the sector.

The next manufacturing data release will provide a clearer indication of whether the improvement suggested by September's business survey is reflected in factory output.

SA360 NEWS will continue monitoring South Africa's economy, industrial performance and developments affecting local businesses.

Sources: Statistics South Africa, Reuters, SABC News and IOL, 8–9 October 2026.