In June 2025, South Africa’s manufacturing sector began to show promising signs of stabilization, reflected in a remarkable increase in the Purchasing Managers’ Index (PMI), which soared to 48.5, a significant improvement from a disheartening 43.1 recorded in May.
While this latest PMI still lingers below the crucial 50-point threshold that signals sectoral expansion, it represents the second-best performance of the year thus far, suggesting a potential resurgence of momentum within the industry.
Economists attribute this encouraging rise to a gradual normalization of supply chains that had previously faced substantial disruptions. Manufacturers are also experiencing a modest uptick in domestic orders, signaling a rekindled confidence among both producers and consumers.
This renewed optimism, however, stands in stark contrast to the overarching challenges still plaguing the manufacturing landscape, primarily driven by persistent power supply issues and sluggish consumer demand, both of which continue to stifle broader economic activity.
Analysts urge a measured approach, cautioning that this tentative recovery remains susceptible to setbacks. They emphasize that any forward momentum will heavily rely on sustained improvements in logistics, which have long been hindered by inefficiencies, as well as a meaningful enhancement in energy reliability.
Absent these critical advancements, the stability of the manufacturing sector may continue to elude the industry, casting a long shadow over the potential for robust growth amid ongoing uncertainty.
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