Finance · South Africa
South African Factory Sector Improves as Local Demand Grows
Moneyweb · 2026/02/02
Summary
South Africa's factory sector is showing signs of improvement as local demand increases. The Purchasing Managers’ Index (PMI), which measures the health of the manufacturing industry, rose from 40.5 to 48.7. Although this number is still below 50, which indicates expansion, the sharp rise shows that factories are becoming more active and optimistic. This improvement is mainly due to higher local orders, which means consumers and businesses are buying more goods made in South Africa. This is good news for the economy because it suggests that businesses are recovering and producing more products to meet demand. However, the sector still faces challenges and needs to sustain this growth to return to full expansion. Overall, the rise in factory activity signals a positive change, reflecting better economic conditions and a hopeful outlook for manufacturers in the country.
OnABudget takeaway: For consumers, increased factory activity could mean more locally made products are available and possibly at better prices. Small business owners might find more opportunities to source goods locally, while investors could see signs of recovery in the manufacturing sector.