National statistics agency Statistics South Africa (Stats SA) says manufacturing production increased by 0.2% year-on-year in October, with eight of the ten manufacturing divisions reporting positive growth rates over this period.

The largest positive contributions were made by food and beverages, which increased by 1.9% year-on-year and contributed 0.5 of a percentage point, and electrical machinery, which increased by 6.5% year-on-year and contributed 0.2 of a percentage point.

The two negative contributions were reported for the wood and wood products, paper, publishing and printing division, which declined by 6.9% year-on-year and contributed to a reduction of 0.7 of a percentage point, and the glass and non-metallic mineral products division, which decreased by 5.8% year-on-year and contributed to a reduction of 0.2 of a percentage point.

Further, manufacturing production increased by 1% in October compared with September, after a 0.3% month-on-month increase in September and a 0.4% month-on-month increase in August.

Manufacturing production increased by 0.4% in the three months ended October, compared with the preceding three months, and six of the ten manufacturing divisions reported positive growth rates over this period, says Stats SA industry statistics director Nicolai Claassen.

The largest positive contributions over the three-month period to end-October were made by petroleum, chemical products, rubber and plastic products, which increased 2.1% and contributed 0.4 of a percentage point, and furniture and other manufacturing, which increased by 9.9% over the three months to end-October, and contributed 0.4 of a percentage point over this period.

During this period, the wood and wood products, paper, publishing and printing division was the largest negative contributor, declining by 5.8% over the three months and contributing to a reduction of 0.6 of a percentage point over this period.

Additionally, manufacturing sales decreased by 0.8% month-on-month in October.

Manufacturing sales increased by 1% in the three months ended October, compared with the preceding three months.

The largest positive contributions were made by the basic iron and steel, non-ferrous metal products, metal products and machinery division, which increased by 5.3% over the three-month period and contributed one percentage point, and the furniture and other manufacturing division, up by 8.2% over the three months and contributing 0.3 of a percentage point.

Further, manufacturing production rose by a marginal 0.2% year-on-year in October, following September’s 1% year-on-year increase, although the result was ahead of the Bloomberg consensus projections of a 1.7% year-on-year contraction, says financial services and wealth management firm Investec economist and research analyst Lara Hodes.

The wood and wood products, paper, publishing and printing category and the glass and non-metallic mineral products grouping sliced a combined 0.9% off the topline reading, which prevented a larger increase, she notes.

Additionally, advance indications provided by the November seasonally adjusted headline Purchasing Managers’ Index show that conditions worsened during that month on a slump in new orders and business activity, she adds.

Favourably, however, the index tracking anticipated business conditions in six months’ time moved back above 50 to 50.8 in November, which is somewhat positive for the manufacturing sector in 2026, although conditions globally remain uncertain, she points out.