SA's manufacturing production contracts by 1.2% compared to a year ago
Stats SA released the latest manufacturing data on Thursday, diluting gains made at the start of the third quarter in July.
Welding in the manufacturing sector. Picture: Pixabay
JOHANNESBURG - Factory activity has seen a disappointing performance in August, with manufacturing production down by 1.2% compared to a year ago.
Stats SA released the latest manufacturing data on Thursday, diluting gains made at the start of the third quarter in July.
Some economists expected manufacturing to continue improving amid more favourable business conditions, including a stable power supply.
The director of Industry Statistics at Stats SA, Nicolai Claassen, said five of the 10 manufacturing divisions recorded a decline in production, with the automotive division among the biggest drags on overall growth.
“The largest negative contributions were made by the following divisions: motor vehicles, parts and accessories and other transport equipment (-16,1% and contributing -1,6 percentage points); and basic iron and steel, non-ferrous metal products, metal products and machinery (-5,4% and contributing -1,2 percentage points).”
Meanwhile, the principal survey statistician at Stats SA, Juan-Pierre Terblanche, said a marginal increase of 0.3% in mining delivered a mixed bag of results.
“The largest positive contributors were: manganese ore (16,0% and contributing 1,2 percentage points); PGMS (4,7% and contributing 1,2 percentage points); and chromium ore (24,8% and contributing 1,1 percentage points).”