South Africa’s manufacturing output drops 4.3% in May as broader economic activity slows

Statistics South Africa reported that manufacturing activity fell 4.3% year‑on‑year in May, with the food and beverages sector leading the decline at 6.4%. Five other divisions also posted losses, contributing to a likely drag on second‑quarter GDP growth.

In June, the PayInc Economic Index slipped 0.9% month‑on‑month to its lowest level since November 2025, while remaining 2.5% above a year earlier. The S&P Global South Africa PMI edged up to 50.5, indicating modest expansion, whereas the Absa PMI fell to 47.3, reflecting weaker domestic demand. Vehicle sales rose 15.3% year‑on‑year, and digital payments increased 11.6% in transaction volume, showing resilience amid higher fuel prices and inflation pressures linked to ongoing Middle‑East conflict.