By: Bright Ntuli
Statistics South Africa (Stats SA) reports that manufacturing production rose by 2% in June 2025 compared to the same month last year, reflecting a moderate rebound in the sector. The increase was mainly driven by growth in the production of food and beverages, as well as petroleum and chemical products. These categories have shown relative resilience amid broader economic pressures.
The manufacturing sector, which contributes around 13% to South Africa’s GDP, has faced significant headwinds in recent years due to persistent load shedding, high input costs and sluggish domestic demand. However, the latest figures suggest signs of stabilisation, especially in consumer-driven subsectors.
Meanwhile, Stats SA’s Nicolai Claassen noted that seasonally adjusted retail trade sales rose by 2% in June compared to May. Over the three months ending in June, sales grew by 1%, supported largely by increased spending on food, beverages and motor vehicles.
Retail trade is a key indicator of consumer confidence and disposable income. The modest uptick may point to a gradual recovery in household spending, although economists caution that high inflation, interest rates and unemployment continue to weigh heavily on consumer behaviour.
