Key South African industrial sectors lost momentum in August 2025, with mining, manufacturing and electricity generation all recording year-on-year declines, according to the latest data from Statistics South Africa.

Mining production fell by 0.2%, as nickel, copper, gold, manganese and chromium ores all registered declines. On the positive side, the industry produced more diamonds,coal and iron ore, tempering the overall contraction. Analysts say the softer performance highlights the dual impact of weak global commodity demand and local logistical bottlenecks affecting mineral exports.

Manufacturing output was similarly lacklustre, declining by 1.5% compared with August 2024. Four manufacturing divisions recorded negative growth, led by a sharp fall in metals and machinery production, which was the main drag on overall performance. Six manufacturing divisions grew but not enough to lift the sector into positive territory. One bright spot came from the automotive and transport equipment division, which expanded by 4.7%, buoyed by strong demand for vehicle exports and domestic fleet replacement.

Electricity generation continued to struggle, down 3.1% year-on-year, marking a third straight month of contraction. Industry observers note that the decline reflects ongoing maintenance at several coal stations, subdued demand from energy-intensive sectors, and slow integration of new private generation capacity.

Despite industrial weakness, consumer activity remained comparatively firm. Retail trade sales grew by 2.3% year-on-year, supported by household spending and the rise of online and specialist retail segments.

Bheki Mahlobo, Economics and Policy Editor at The Common Sense, said: “the combination of falling output in mining, manufacturing and electricity points to continued headwinds for South Africa’s growth outlook heading into the final quarter of 2025 and suggests that our subdued GDP growth forecast for the year will prove fairly accurate.”