South African manufacturing output unexpectedly increases in June

Manufacturing sector will have a positive contribution to the overall gross domestic production

- YOGASHEN PILLAY

MANUFACTURING output surged more than expected in June. Statistics South Africa (Stats SA) on Monday said manufacturing production rose by 1.9% year-on-year in June 2025, quickening from a 0.7% increase in May, and overshooting market estimates of a 1% advance.

This marked the second consecutive month of industrial growth, meaning that the manufacturing sector will have a positive contribution to the overall gross domestic production (GDP) for the second quarter.

Lara Hodes, Investec Economist, said the outcome was ahead of consensus expectations.

Hodes said this was in line with the movement of the seasonally adjusted Absa Purchasing Managers' index (PMI), which picked up moderately in June, supported by some recovery in demand.

"Accordingly, the sector will contribute positively to the quarter's GDP outcome, after detracting from the first quarter's reading," Hodes said.