The outlook for South Africa’s manufacturing sector has worsened, with producers facing a dual squeeze from rising fuel prices and persistent weakness in demand.
After a sluggish start to the year, the sector’s trajectory has turned more uncertain as input costs continue to climb, eroding already thin margins for manufacturers.
Business Day reports that the combination of higher energy costs and soft consumer demand is creating significant headwinds for local producers.
The pressure is particularly acute for companies reliant on imported raw materials, which are now contending with both higher freight and energy expenses.
This development aligns with broader concerns about the transmission of global oil price shocks into domestic economies.
Rising global energy costs have begun to seep into the South African economy, squeezing margins for manufacturers dependent on imported inputs.