South Africa’s manufacturing output falls sharply in April

SA manufacturing output drops. Photo: Reuters

Statistics South Africa has reported that manufacturing production in April 2025 dropped by 6.3% year-on-year, marking the sector’s sixth consecutive monthly decline and its steepest fall since March 2024. According to Reuters, while production improved on a month-to-month basis—rising 1.9% from March—it failed to offset the significant annual contraction

The downturn in April was broad-based. The food and beverages sector led the drop with a 7.6% decline, while output in iron and steel, non-ferrous metals, and metal products fell by 6.3%, and motor vehicles and parts plunged by a sharp 13%. Even petroleum, chemicals, rubber, and plastics recorded a 4.7% decrease.

Despite the year-over-year slump, the month-on-month rebound of 1.9%—following a 2.5% dip in March—offers a small measure of optimism. However, the broader trend remains negative, with IOL reporting that economists are pointing to prolonged macroeconomic pressures and policy uncertainty as key headwinds.

The manufacturing slump dented South Africa’s first-quarter GDP, which grew at a modest 0.1%. Still, the rand strengthened against the dollar, buoyed by higher gold prices and a softer U.S. dollar. Investors are keeping an eye on this data alongside global trade dynamics and PMI signals to assess risks to future industrial output.

Stats SA’s Nicolai Claassen, elaborates: