SA manufacturing activity stalls as sales dip and confidence slumps

SOUTH Africa's manufacturing and broader private sector activity remained ina holding pattern in February, as weak demand and declining sales offset gains from easing cost pressures and a modest rebound in employment.

- SIPHELELE DLUDLA

AFTER shrinking by 0.4% in 2024, the sector is on track for another contraction this year, with output down 1.5% year-to-date, even before fourth-quarter data is included, Absa said.

(SIMPHIWE MBOKAZI Independent Newspapers)

The latest S&P Global South Africa Purchasing Managers’ Index (PMI) released on Wednesday showed that the headline index was unchanged at 50.0 in February, the same level recorded in January.

A reading of 50.0 signals stagnation for a second consecutive month after weakness in late 2025, indicating that business conditions neither improved nor deteriorated compared to the previous month.

The S&P print follows the Absa PMI for February, which lost ground with the headline index declining to 47.4 in February following an 8.2 point increase to 48.7 in January.

S&P said while the flat reading points to stability after a weak final quarter of 2025, underlying indicators suggest that the recovery remains fragile.

Survey data revealed that new business volumes declined for the fourth time in five months in February. Companies reported a slight dip in overall sales, reflecting what many described as a subdued demand environment.