By Lehlohonolo Lehana.
South Africa’s manufacturing output rose 1.9% year on year in June, after rising by a revised 0.7% in May, statistics agency data showed on Monday.
Analysts polled by Reuters and Nedbank economists expected production to have risen 1% and 0.8%, respectively.
The largest positive contribution to the annual rate came from food and beverages (+6.0% and contributing 1.4 ppts) and petroleum, chemical products, rubber and plastic products (+1.9% and contributing 0.4 ppt).
Meanwhile, the motor vehicles, parts and accessories and other transport equipment division output was unchanged from a year ago. The latest industry data from the Automotive Business Council indicates that cumulative domestic vehicle production stood at 284 125 units in June, down 2.4% compared to the first six months of 2024.
Although cumulative new vehicle sales are up 13.6% in the first half of the year and export volumes are roughly 2.5% higher over the same period, South Africa’s cumulative new vehicle imports in the first half of 2025 are 32.4% higher than the same period in 2024, indicating that local manufacturers are producing fewer units.
Seasonally adjusted manufacturing production increased by 1.5% during the second quarter of 2025. Statistics SA notes that seven of the ten manufacturing divisions increased over this period and the latest manufacturing output numbers for June indicate that the manufacturing sector is expected to make a positive contribution to GDP for the second quarter.
This week’s releases also include mining output and unemployment figures on Tuesday and retail sales data on Wednesday.
The Johannesburg Stock Exchange’s Top-40 index was last down 0.5%.
South Africa’s benchmark 2035 government bond was weak, as the yield rose two basis points to 9.65%.