South Africa’s manufacturing sector stayed in contraction in February 2026 due to weak demand and ongoing disruptions.

South Africa’s manufacturing sector remained in contraction in February 2026, with the Absa PMI falling to 47.4, below the 50-point threshold, as weak domestic and external demand reversed January’s gains. Business activity and employment declined, while port delays, power outages, and supply chain disruptions persisted. Although input costs eased and future outlooks improved slightly, ongoing geopolitical tensions threaten rising fuel prices and further strain margins. A sustained recovery remains uncertain amid structural challenges and volatile global conditions.