South Africa's gross domestic product contracted by 0.2 per cent in the second quarter of 2026, ending six consecutive quarters of growth. Mining and quarrying fell 3.0 per cent, trade 1.9 per cent and manufacturing 1.8 per cent. Finance, transport and government services recorded smaller gains, and household spending rose 0.4 per cent.
South Africa's economy contracted by 0.2 per cent in the second quarter of 2026. The decline followed first-quarter growth of 0.4 per cent, which the statistics office had revised down from the 0.5 per cent first reported. The reading ended six consecutive quarters of expansion. Gross fixed capital formation fell 0.2 per cent over the same three months, leaving investment weak alongside the drop in production.[1], [2]
Three industries accounted for the production-side decline. Trade, catering and accommodation fell 1.9 per cent and subtracted 0.2 of a percentage point, with weaker wholesale trade, motor trade, and food and beverages. Manufacturing fell 1.8 per cent and also subtracted 0.2 of a percentage point; seven of the ten manufacturing divisions recorded negative growth, led by food and beverages, furniture, and basic iron and steel. Mining and quarrying fell 3.0 per cent and subtracted 0.1 of a percentage point. The largest negative contributors there were platinum group metals, manganese ore, gold and iron ore.[1], [2]
Finance, real estate and business services grew 0.3 per cent and added 0.1 of a percentage point. Transport, storage and communication grew 0.9 per cent, with stronger land transport, and general government services grew 1.0 per cent, each adding 0.1 of a percentage point. Household final consumption expenditure rose 0.4 per cent, led by food and non-alcoholic beverages, which increased 1.2 per cent. Economists surveyed after the release put full-year 2026 growth at 1.2 per cent.[1], [2]
