South Africa's industrial production fell 4.3% year-on-year in August, reversing a 1.1% gain recorded in July, according to data released on Thursday by the country's national statistics agency.

Factory output contracted 3.1% in month-on-month terms in August, following a 2.2% increase in July.

S&P Global has also flagged signs of broader economic weakness, with South Africa's private sector contracting in September at its fastest pace since December.

The S&P Global South Africa Purchasing Managers' Index (PMI) fell to 49.0 points in September from 50.5 points in August. The 50-point threshold separates expansion from contraction.

The financial and economic data analytics firm said the deterioration was driven by fresh contractions in business activity and new orders, against a backdrop of weakening demand, rising prices, and heightened economic uncertainty.

Supply chain pressures also intensified, with supplier delivery times lengthening at the fastest rate since February 2024. Surveyed companies cited congestion at the Port of Durban, shipping disruptions, and material shortages as key contributing factors.