Manufacturing production slump continued in February

The manufacturing slump continued in February with a 2.8% year-on-year decline. This was the fourth consecutive year-on-year fall. The February decrease was the largest since April 2025, when the drop was 6.7% year-on-year.

The manufacturing Feb 2026 data provided by Statistics South Africa

Statistics South Africa said seven of the ten sectors had year-on-year declines. These were wood and wood products, paper, publishing and printing (-9.7%), furniture and other manufacturing (-5.8%), motor vehicles, parts and accessories and other transport equipment (-5.2%), food and beverages (-4.5%), basic iron and steel, non-ferrous metal products, metal products and machinery (-3.6%), radio, television and communication apparatus and professional equipment (-3.2%) and textiles, clothing, leather and footwear (-0.9%).

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The three positive sectors were glass and non-metallic mineral products (6.4%), electrical machinery (5.7%) and petroleum, chemical products, rubber and plastic products (1.9%). Surprisingly, given all the negative headlines about the petroleum sub-sector, the coke, petroleum products and nuclear fuels grew by 10.5% year-on-year in February after a 22.0% year-on-year jump in January.

2025 manufacturing

Manufacturing production fell by 1.3% in 2025. It is now 7.9% less than 2019. The decline in manufacturing production is in large measure due to the extended period of electricity load shedding, as well as the high electricity prices.

The continued slump in manufacturing production in February may mean that 2026 could see a third consecutive downturn. This is especially so after the start of the Middle East war.

Manufacturing expectations had a record plunge in March 2026. The expectations index fell by a record 22.9 points to 45.9. This suggested a significant deterioration in business confidence among purchasing managers.

Electricity consumption in 2025 lowest since 2001

High electricity prices as well as the erratic supply of power meant that industries such as steel and ferroalloy smelting had to close down electric arc furnaces that were unable to compete with international suppliers who had access to cheap reliable power.

This is reflected in the 7.6% year on year decline in electricity consumption in December 2025. The annual consumption was 4.2% less than 2024 and was the lowest since 2001.

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