Last week, the local narrative of de-industrialisation, escalating fears over the possibility of board US trade tariffs, and a strong US employment report weighed on the ZAR. The domestic economic calendar highlighted weakness within the private sector, and ArcelorMittal announced the closure of its long-steel business in South Africa. South African manufacturing production for November contracted, S&P Global’s SA PMI for December moved back into contractionary territory, and Absa manufacturing PMI dropped further into contractionary territory in December. The data highlights ongoing headwinds for South African businesses, particularly in the industrial sector.