The manufacturing sector continues to struggle, as year-on-year data from Statistics South Africa (Stats SA) shows a sharp decrease of 4.3% in May.

This follows a 2.9% decrease the previous month.

The food and beverages category showed the biggest decline in this period, while petroleum, chemical, rubber and plastic products, textiles and clothing, and electrical machinery showed stronger gains on a year-on-year basis.

“South African manufacturing activity decreased by 4.3% year-on-year in May. Seven of the 10 manufacturing divisions registered a weaker month. Food and beverages were the most significant negative contributor, retreating by 6.4% year-on-year and pulling overall growth down by 1.6 percentage points. Five other divisions also recorded losses, with wood, paper printing and publishing, furniture and other manufacturing, and glass and non-metallic mineral products, registering the sharpest decreases,” says Stats SA’s Director of Industry Statistics, Nicolai Claassen.

#SAmanufacturing || South African manufacturing activity decreased by 4,3% year-on-year in May 2026.

PDF statistical release and Excel files: https://t.co/4fZwuO9g5u #StatsSA #KnowYourStatsZA #GovZAUpdates pic.twitter.com/aFOgEf1PII

— Statistics South Africa (Stats SA) (@StatsSA) July 9, 2026

FNB Senior Economist, Thanda Sithole, says the trend will likely impact the second quarter GDP growth negatively.

“While production rebounded modestly on a month-on-month basis after seasonal adjustments, the broader trend remains weak, with output over the three months to May pointing to a likely drag from the manufacturing sector on second-quarter GDP growth. Looking ahead, the outlook remains challenging. Manufacturers continue to face elevated production costs, lingering effects from the recent Middle East conflict, and persistent domestic infrastructure constraints.”