Manufacturing production declined by 2.9% year-on-year in April, marking the sector’s steepest annual contraction in a year and reversing an upwardly revised 1.5% increase recorded in March.
Image: Simphiwe Mbokazi/Independent Newspapers
South Africa’s productive sectors delivered a mixed performance at the start of the second quarter of 2026, with a strong rebound in mining helping to offset renewed weakness in manufacturing, highlighting the uneven nature of the country’s economic recovery.
Data released by Statistics South Africa (StatsSA) on Thursday showed that manufacturing production contracted sharply in April, while mining output recorded its fifth consecutive month of growth, buoyed largely by platinum group metals (PGMs).
Manufacturing production declined by 2.9% year-on-year in April, marking the sector’s steepest annual contraction in a year and reversing an upwardly revised 1.5% increase recorded in March. On a month-on-month basis, seasonally adjusted production fell by 2.7%, the largest monthly decline since May 2024.
The poor start to the second quarter follows an already weak first quarter, during which manufacturing activity contracted by 0.8%, extending a trend of declining industrial output.
StatsSA director of industry statistics, Nicolai Klaassen, said six of the country’s 10 manufacturing divisions recorded declines during April.
“The iron and steel, non-ferrous metal products and machinery division was the key drag on momentum. The division weakened by 6% year-on-year, subtracting 1.4 percentage points from overall growth,” Klaassen said.
Other major contributors to the decline included the wood, paper, publishing and printing division, which fell by 10%, while the automotive sector contracted by 11%.
The latest figures suggest that manufacturers continue to face difficult operating conditions despite pockets of resilience in industries such as electrical machinery, textiles and clothing, and transport equipment earlier in the year.
The weakness in manufacturing is particularly concerning given the sector’s role in job creation and value addition within the economy. Manufacturing remains one of South Africa’s key productive industries and a major contributor to industrialisation and export earnings.
In contrast, the mining sector began the second quarter on a much stronger footing.
Mining production increased by 8.2% year-on-year in April, significantly outperforming market expectations and accelerating from a revised 2.5% increase in March.
The growth was primarily driven by a surge in PGM production, which jumped 36.5% year-on-year and contributed 8.8 percentage points to overall mining growth. Output also increased for manganese ore and chromium ore, while declines were recorded in coal, copper, diamonds and other metallic minerals.
Stats SA principal service statistician Jean-Pierre Terblanche said PGMs were the most significant contributor to the sector’s performance.
“Platinum group metals was the most significant positive contributor, increasing by 36.5% and contributing 8.8 percentage points to overall growth,” he said.
Terblanche noted that chromium ore achieved its eighth consecutive month of annual growth, underlining the continued strength in selected mineral commodities.
On a seasonally adjusted basis, mining production increased by 3.3% month-on-month in April, recovering from a revised 4.8% decline recorded in March.
According to Investec economist Lara Hodes, the strong mining performance was aided by favourable base effects, particularly in the PGM industry, where production had been disrupted by adverse weather conditions during the corresponding period last year.
“The increase was not broad-based and was largely underpinned by the year-on-year increase in PGMs, which make up 27.1% of the mining basket,” Hodes said.
She noted that platinum prices have more than doubled over the past year, supported by tight global supply and stronger demand dynamics. South Africa remains the world’s largest producer of platinum, positioning the country to benefit from higher prices and improving market conditions.
However, Hodes cautioned that rising input costs are beginning to emerge as a risk for the mining industry. The ongoing conflict in the Middle East has pushed up energy and operational costs, with the Mining Composite Input Cost Index rising to 2.7% year-on-year in April from 2.3% in March.
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