South African Factory Output Falls 3.5%

Manufacturing production declined year-on-year in September 2026, with motor vehicle and transport equipment output down sharply.

Updated on Nov. 10, 2026 in Manufacturing

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South African factory output fell 3.5% year-on-year in September 2026, according to Statistics South Africa. Seasonally adjusted manufacturing production remained flat that month after contracting 3% in August.

Why it matters

The figures show a weakening in the manufacturing sector heading into the end of 2026, with the decline concentrated in motor vehicle and transport equipment. For South Africa's economy as a whole, manufacturing output is a key indicator of industrial health and employment.

Statistics South Africa's release shows factory output down 3.5% year-on-year in September 2026, with motor vehicle and transport equipment down 15%. The release does not give reasons for the vehicle-sector drop or indicate whether the trend will continue.

The players

Statistics South Africa

Statistics South Africa is the national agency responsible for compiling official economic and social statistics, including the monthly manufacturing production survey.

The details

Seasonally adjusted manufacturing production contracted 3% in August 2026 and was flat in September. Over the third quarter, seasonally adjusted activity rose 0.9% compared with the second quarter, with five of the 10 manufacturing divisions reporting higher production and food and beverages the largest positive contributor.

August 2026: seasonally adjusted manufacturing production contracted 3%.
Q3 2026: seasonally adjusted activity rose 0.9% compared with Q2.
September 2026: year-on-year output fell 3.5% while monthly output was flat.

Market Landscape

The third-quarter gain of 0.9% in seasonally adjusted activity was narrowly based, with only five of 10 manufacturing divisions expanding. Within that picture, the September drop in motor vehicle and transport equipment stands out against food and beverages as the sector's main driver of output.

Lower manufacturing output can affect the availability and pricing of locally made vehicles and transport equipment. Shoppers and businesses relying on these sectors may see the effects in product supply over the coming months.

The takeaway

Monthly manufacturing figures can shift quickly, so tracking the quarterly trend alongside the headline monthly number gives a clearer picture of direction. Checking the sector breakdown helps show whether a decline is broad or confined to a few industries.