The Absa purchasing managers index (PMI) picked up slightly in August but still showed a sector under pressure.
The index rose to 44 index points in August, after slumping to 42.9 in July — the lowest level since the 2009 financial crisis.
The index has struggled to climb above the neutral 50-point mark after falling below it in June.
A score above 50 indicates an expanding manufacturing sector.
The improvement was broad based, with four of the five main subcomponents increasing.
Absa said on releasing the latest index on Friday: "Despite ticking higher, the key subindices remained below the neutral 50-point mark.
"This suggests that the manufacturing sector is still under significant pressure and does not bode well for manufacturing output (and overall GDP) in the third quarter of 2017."
Absa also noted that respondents are notably more pessimistic about business conditions going forward.
Expected business conditions in six months’ time declined from 51.3 to 46.6 points in August — the first time since February 2016 the subcomponent fell below 50.
"It signals that purchasing managers expect business conditions to worsen further through the second half of 2017.
"If the weak demand and production environment persists, a sustained improvement remains unlikely."
The July Standard Bank PMI, which measures conditions in the broader economy, lifted to just above 50 points, at 50.1, from 49 in June.
In that reading, released early last month, indices tracking new orders, employment and stocks of purchases climbed above 50, while those tracking output remained below 50.
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