{
  "id": 12888816,
  "title": "South Africa's manufacturing output experienced a slump in August",
  "url": "https://urgent.news/2026/10/08/south-africas-manufacturing-output-experienced-a-slump-in-august",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T14:24:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/business/economy/2026-10-08-south-africas-manufacturing-output-experienced-a-slump-in-august/"
  },
  "original_language": "en",
  "account": "In August, South Africa's manufacturing sector encountered a setback, with production plummeting by 4.3% compared to the previous year. This decline surpassed market forecasts of a 0.4% increase and was coupled with a 3.1% month-on-month decline in seasonally adjusted output, according to Statistics South Africa (Stats SA). Lara Hodes, an economist at Investec, noted that the figure aligned with the scant growth seen in the Absa Purchasing Managers' Index (PMI) during the same month, which dropped to 45.8 points. The PMI, a gauge compiled by the Bureau for Economic Research (BER), highlighted a downturn in business activity and new sales orders, as manufacturers grappled with sagging demand, faltering consumer confidence, and reduced spending on discretionary items. Hodes remarked that the outcome was significantly below consensus expectations, emphasizing the lingering subdued confidence within the manufacturing sector due to insufficient demand and mounting worries about the overall business climate. Notably, the decline was widespread, with only the textiles, clothing, leather, and footwear segment registering growth when compared to the same period last year. The petroleum, chemical products, rubber, and plastics industry suffered the most pronounced contraction, declining by 5%, which subtracted 1.1 percentage points from the overall manufacturing performance. Basic chemicals witnessed a particularly severe downturn, contracting by 19%. Additionally, motor vehicles, parts and other transport equipment experienced a notable reduction of 8.8%, while food and beverages saw a decline of 3%, and the basic iron and steel, non-ferrous metals, metal products, and machinery segment contracted by 3%. The broader manufacturing slowdown was evident, as the sector contracted by 1.8% in the second quarter of the year, contributing 0.2 percentage points to the economy's 0.2% contraction in the same period. However, there were some positive signs emerging in early September. The Absa PMI rebounded by 4.9 points to 50.7, moving back above the 50-point threshold that delineates expansion from contraction after three successive months below it. New sales orders rebounded sharply, while business activity largely recaptured its August decline. Despite these improvements, Hodes cautioned that manufacturers continued to confront heightened uncertainty, especially regarding rising input costs and the impact of the conflict in the Middle East on profitability.",
  "summary": "South Africa’s manufacturing output fell 4.3% in August, far worse than expected, with weak demand and subdued confidence weighing on factories despite signs of improvement in September.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}